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

Multiple Choice Questions

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

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

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

4. Michael Steindardt believed what was the "culprit in 1994"?
(a) Wealth.
(b) Leverage.
(c) Poverty.
(d) Foolish investments.

5. How much did the accounts for investors increase in 1994?
(a) 5%.
(b) 50%.
(c) 20%.
(d) 10%.

Short Answer Questions

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

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

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

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

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

(see the answer key)

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