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

Multiple Choice Questions

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

2. What percentage of Americans had no knowledge of Long-Term?
(a) 99%.
(b) 75%.
(c) 50%.
(d) 10%.

3. What type of funds gained popularity in the 1990's?
(a) Mutual.
(b) Treasury.
(c) Value.
(d) Real estate.

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

5. What did Long-Term do with off-the-run bonds?
(a) Unload them quickly.
(b) Avoid them.
(c) Loan them to other firms.
(d) Hold them for profit.

Short Answer Questions

1. By the end of 1996, what was the status of the credit financing Long-Term wanted?

2. What year did Meriwether hire Myron Scholes?

3. What type of strategy did Long-Term employ?

4. What did the banks and investors use to estimate Long-Term's assets?

5. In 1994, what market did Long-Term begin to express an interest in?

(see the answer key)

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