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This quiz consists of 5 multiple choice and 5 short answer questions through Dear Investors.

Multiple Choice Questions

1. Who did most funds have to be registered with?
(a) SEC.
(b) The Fed.
(c) Most funds did not have to be registered.
(d) CFTC.

2. What did the letter Meriwether sent to his clients claim it was difficult to do with Long-Term?
(a) Lose money.
(b) Make money.
(c) Take legal action.
(d) Get a job.

3. What was J.F. Eckstein & Co. primarily working on in 1979?
(a) IO's.
(b) Stocks.
(c) Treasury Bill futures.
(d) Bonds.

4. What were the models Long-Term used unable to predict?
(a) Long-Term's exact income.
(b) Investor's exact return.
(c) All of these.
(d) Market collapse.

5. In 1994, what market did Long-Term begin to express an interest in?
(a) Chicago.
(b) Local.
(c) International.
(d) Chinese.

Short Answer Questions

1. What year did Meriwether hire Myron Scholes?

2. What was Meriwether's team allowed to do, following the Treasury bill deal?

3. What is the method of paying a percentage of a bond called?

4. What affected bond trading in the 1970's?

5. Michael Steindardt believed what was the "culprit in 1994"?

(see the answer key)

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