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

Multiple Choice Questions

1. Who threatened to stop clearing the trades at Long-Term if their fund fell below a particular amunt?
(a) Bear Sterns.
(b) Fidelity.
(c) Goldman Sachs.
(d) Chase.

2. When did Long-Term begin scrambling to raise money?
(a) August 30.
(b) August 10.
(c) August 24.
(d) August 2.

3. After the financial crisis in Russia, what did Long-Term regret?
(a) All of these.
(b) Creating deals that were not liquid.
(c) Forcing investors to take back money.
(d) Creating private deals.

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

5. In a letter to clients, to what did Long-Term attribute the decrease in profits?
(a) Poor margins.
(b) Foolish investments.
(c) Widening spreads.
(d) Irresponsibility in foreign nations.

Short Answer Questions

1. Who took the majority of the blame for the failures at Long-Term?

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

3. In order for Meriwether's Treasury futures investment to work, what did he need market prices to do?

4. What did the banks and investors use to estimate Long-Term's assets?

5. When Meriwether increased his position in Treasury futures, what did he expect the market to do?

(see the answer key)

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