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

Multiple Choice Questions

1. What was the internal climate at Long-Term in 1998?
(a) The same as always.
(b) Positive.
(c) Deteriorating.
(d) Negative.

2. What award did Merton and Scholes win for economics?
(a) None of these.
(b) The Wall Street Trust.
(c) The Nobel Prize.
(d) The Academy Award.

3. Once in business, what did Long-Term have an easy time getting from banks?
(a) Money.
(b) Endorsements.
(c) Workers.
(d) Personal information.

4. When did Long-Term begin scrambling to raise money?
(a) August 10.
(b) August 2.
(c) August 30.
(d) August 24.

5. Who was withdrawing from the hedge fund markets?
(a) Small investment firms.
(b) Foreign countries.
(c) Large investment firms.
(d) Long-Term.

Short Answer Questions

1. Who helped Meriwether raise money for Long-Term?

2. What did the banks and investors use to estimate Long-Term's assets?

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

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

5. What was the result for some banks due to their involvement in the derivatives market?

(see the answer key)

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