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This quiz consists of 5 multiple choice and 5 short answer questions through Bank of Volatility.

Multiple Choice Questions

1. In 1996, the first bank Long-Term approached regarding credit deemed Long-Term as what?
(a) Greedy.
(b) Brilliant.
(c) A great investment.
(d) Too risky.

2. In 1998, what market did Long-Term bet would decline?
(a) The U.S. market.
(b) The Asian market.
(c) The Latin market.
(d) The Russian market.

3. What type of government paper was bought in Italy?
(a) Fluctuating rate.
(b) Deeds to monuments.
(c) Italian money.
(d) Floating rate.

4. Who gains from working with hedge funds?
(a) Women.
(b) Impoverished countries.
(c) Managers.
(d) The government.

5. Who suspended arbitrage operations in April 1998?
(a) Salomon.
(b) Fidelity Bank and Trust.
(c) Goldman Sachs.
(d) Chase.

Short Answer Questions

1. Why did Long-Term trade in Italy?

2. When did Long-Term start losing money?

3. What models did Long-Term follow?

4. Once in business, what did Long-Term have an easy time getting from banks?

5. How much did Long-Term earn in its first year of operation?

(see the answer key)

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