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This quiz consists of 5 multiple choice and 5 short answer questions through At the Fed.

Multiple Choice Questions

1. In August 1998, how far down was Long-Term for the year-to-date?
(a) 52%.
(b) 10%.
(c) 35%.
(d) 2%.

2. In 1998, what type of contracts did Long-Term make with private entities?
(a) Liquid.
(b) Long-term.
(c) Illegal.
(d) Short-term.

3. How many employees were with Long-Term in 1996?
(a) Five hundred.
(b) Less than a dozen.
(c) Five.
(d) A couple dozen.

4. In the mid-1990's, what was the ratio of leverage on Wall Street?
(a) 25-1.
(b) 10-1.
(c) 45-1.
(d) 100-1.

5. What companies were selling bonds for Russia?
(a) Investment banking firms.
(b) All of these.
(c) Mom and pop establishments.
(d) Black market traders.

Short Answer Questions

1. After the meeting with the Fed, a market movement of what percentage could have ended Long-Term?

2. Where was Robert C. Merton working when Meriwether hired him?

3. What were the models Long-Term used unable to predict?

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

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

(see the answer key)

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