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This quiz consists of 5 multiple choice and 5 short answer questions through The Fall.

Multiple Choice Questions

1. What did Long-Term avoid by working with derivatives instead of stocks?
(a) Profit.
(b) Fees.
(c) Disclosure.
(d) Outside interest.

2. To create a paired-share, what is common stock partnered with?
(a) Bond deals.
(b) Preferred stock.
(c) Shorted stocks.
(d) Private stock.

3. In 1996, why was it difficult to continue to find strong profits in arbitrage trades?
(a) The market was over-saturated.
(b) Long-Term did not have investment capital.
(c) The market did not have enough players.
(d) It was illegal to perform these trades.

4. What were popular pools in 1993?
(a) Green energy.
(b) Oil.
(c) Electricity.
(d) Mortgage.

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

Short Answer Questions

1. What was the first horrible month Long-Term had?

2. In its first bad year, what did Long-Term maintain?

3. What did Long-Term want to do for investors?

4. What was the dollar amount of the premium Long-Term paid for its loan?

5. Who became the temporary CEO of Meriwether's group when scandal hit?

(see the answer key)

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