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

Multiple Choice Questions

1. Who did most funds have to be registered with?
(a) Most funds did not have to be registered.
(b) CFTC.
(c) SEC.
(d) The Fed.

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

3. In 1998, what act led Long-Term to a fall?
(a) Shorting the U.S. market.
(b) Putting money into Italy.
(c) Investing in the Asian market.
(d) Shorting the Russian market.

4. Meriwether was threatened with what, if his Treasury bill deal did not pan out?
(a) Death.
(b) A lawsuit.
(c) Termination.
(d) A promotion.

5. How much equity did Long-Term have hold of in 1997?
(a) $5 billion.
(b) $1 billion.
(c) $0.
(d) $100 million.

Short Answer Questions

1. What companies were selling bonds for Russia?

2. What typically happens to stock prices when a merger is revealed?

3. What did the letter Meriwether sent to his clients claim it was difficult to do with Long-Term?

4. In 1996, what was the response of most of the banks in terms of offering credit financing to Long-Term?

5. When Russia began to default on its loans, what did people start doing with their high risk bonds?

(see the answer key)

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