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

Multiple Choice Questions

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

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

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

4. What was Long-Term's signature trade based on?
(a) Consistency of volatility.
(b) Consistency of failure.
(c) None of these.
(d) Consistency of investments.

5. In the mid-1990's, what was the ratio of leverage on Wall Street?
(a) 10-1.
(b) 100-1.
(c) 25-1.
(d) 45-1.

Short Answer Questions

1. By the end of 1996, what was the status of the credit financing Long-Term wanted?

2. What hedge fund caused a pound devaluation in Europe but made over a billion dollars?

3. What financial crisis did Long-Term make it through that most of the market didn't?

4. What did the traders accept about the financial models they used?

5. At what level was the swap rate of the United States in April 1998?

(see the answer key)

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