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

2. Why did Long-Term trade in Italy?
(a) Meriwether was Italian.
(b) It was a safe market.
(c) The opportunity for big returns.
(d) The tax write-off opportunity.

3. What factor was forcing those with hedge funds to sell?
(a) Toxic assets.
(b) Ample credit.
(c) Lack of credit.
(d) The Fed's involvement.

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

5. How much of the face value of a bond do buyers typically pay?
(a) 25%.
(b) 15%.
(c) 10%.
(d) 1%.

Short Answer Questions

1. Meriwether believed that risk and volatility were what?

2. In 1998, what act led Long-Term to a fall?

3. Where was David W. Mullins working when Meriwether hired him?

4. How was Meriwether's career affected following the Treasury bill deal?

5. What affected bond trading in the 1970's?

(see the answer key)

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