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

Multiple Choice Questions

1. When did the Russian market begin to fail?
(a) May 1998.
(b) August 1998.
(c) September 1998.
(d) April 1998.

2. In 1998, Long-Term expected prices to do what?
(a) Stay the same.
(b) Fall.
(c) Fluctuate.
(d) Rise.

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

4. What group did Meriwether found in 1977?
(a) The Meegen Group.
(b) The Commanders.
(c) The Arbitrage Group.
(d) Smith & Meriwether Co.

5. What happened to Meriwether's Treasury bill deal before it was resolved?
(a) It fell apart.
(b) Huge gains.
(c) Big losses.
(d) It remained steady.

Short Answer Questions

1. In 1996, what was Long-Term seeking from the bank that would handle their credit?

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

3. Where did the private contracts Long-Term made in 1998 trade?

4. What regulation did Long-Term bypass when trading equities?

5. Once crisis hit, how many weeks did it take for the partners to lose $3.6 billion?

(see the answer key)

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