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

Multiple Choice Questions

1. In bond trading, what are loans backed by collateral called?
(a) Repo financing.
(b) Exclusive trades.
(c) Mini trades.
(d) Fair financing.

2. What is the CFTC short for?
(a) Commodities Finding True Commission.
(b) Counting Futures Trading Commodities.
(c) Capitalism Fortune Trust Commonwealth.
(d) Commodities Futures Trading Commission.

3. What is the method of paying a percentage of a bond called?
(a) A trim.
(b) A haircut.
(c) A bond fee.
(d) A percentage price.

4. What did Long-Term expect foreign banks to invest?
(a) $10 million.
(b) $100 million.
(c) Only individuals could invest.
(d) $1 million.

5. How much money did Rosenfeld's business bring in?
(a) Hundreds of thousands.
(b) Two million.
(c) A couple thousand.
(d) Five million.

Short Answer Questions

1. How much of the face value of a bond do buyers typically pay?

2. What company was Kapor the founder of?

3. In 1994, why did the price of bonds drop?

4. How much did Long-Term plan to take from its profits?

5. Who developed the Black-Scholes model?

(see the answer key)

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