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

Multiple Choice Questions

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

2. What was the dollar amount of the premium Long-Term paid for its loan?
(a) $289 million.
(b) $1 billion.
(c) $200 million.
(d) $100 million.

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

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

5. What were the models Long-Term used unable to predict?
(a) Market collapse.
(b) All of these.
(c) Investor's exact return.
(d) Long-Term's exact income.

Short Answer Questions

1. Who gains from working with hedge funds?

2. What did Long-Term want to do for investors?

3. Where was the Long-Term Capital Portfolio stored?

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

5. How much did banks and investors make in conjunction with Long-Term?

(see the answer key)

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