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

Multiple Choice Questions

1. How much money did Chase loan Long-Term so that they could continue to clear trades?
(a) $10 million.
(b) $5 million.
(c) $475 million.
(d) $752 million.

2. During the financial crisis in 1998, what did the partners keep from the workers?
(a) Hope.
(b) Profits.
(c) Information.
(d) Money.

3. What did Meriwether warn his investors against in 1994?
(a) A repeat performance.
(b) Not investing enough with Long-Term.
(c) His early retirement.
(d) Further growth.

4. What was the climate at Long-Term during the Russian financial crisis?
(a) Confident.
(b) Standard.
(c) Nervous.
(d) Excited.

5. On what date did Russia declare a debt moratorium?
(a) September 30.
(b) August 17.
(c) August 31.
(d) July 4.

Short Answer Questions

1. In spite of business models, some justified the failures of the Long-Term traders as being what?

2. What happened to the financial industry as a result of Long-Term's behavior?

3. What did Scholes and Merton think of some of the private trades Long-Term made in 1998?

4. What put pressure on the currency in Brazil?

5. Once the financial market in Russia collapsed, what did people stop trading?

(see the answer key)

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