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

Multiple Choice Questions

1. What was the typical scenario for bond investors in 1994?
(a) Few invested in bonds.
(b) Minimal gains.
(c) Substantial gains.
(d) Loss.

2. What regulation did Long-Term bypass when trading equities?
(a) Regulation-B.
(b) Regulation-C.
(c) Regulation-T.
(d) Regulation-E.

3. What notable company went bankrupt in the 1970's?
(a) Penn Weapons Industry.
(b) Penn Central Railroad.
(c) Penn North Distillery.
(d) Penn Coal.

4. In 1996, Long-Term had achieved thirty times its what?
(a) Debt capacity.
(b) Proposed value.
(c) Starting capital.
(d) Original goal.

5. What did the traders accept about the financial models they used?
(a) They removed the element of surprise.
(b) They were smarter than humans.
(c) They were imperfect.
(d) They were expensive.

Short Answer Questions

1. What did Rosenfeld and his friend develop?

2. What was Meriwether's team allowed to do, following the Treasury bill deal?

3. When did Long-Term start losing money?

4. What did a dealer from J.F. Eckstein & Co. want from Meriwether in 1979?

5. What is the method of paying a percentage of a bond called?

(see the answer key)

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