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

Multiple Choice Questions

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

2. How much did Long-Term plan to take from its profits?
(a) 30%.
(b) 25%.
(c) 10%.
(d) 15%.

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

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

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

Short Answer Questions

1. What was the typical scenario for bond investors in 1994?

2. How was Meriwether's career affected following the Treasury bill deal?

3. Who gains from working with hedge funds?

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

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

(see the answer key)

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