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

Multiple Choice Questions

1. Who ran the London office for Long-Term?
(a) Meriwether.
(b) Haghani.
(c) Buffet.
(d) Mullins.

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

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

4. In August 1998, how far down was Long-Term for the month?
(a) 60%.
(b) 25%.
(c) 10%.
(d) 44%.

5. In 1994, why did the yield raise on the thirty year Treasury bond?
(a) It rose 16%.
(b) It rose 5%.
(c) It dropped 10%.
(d) It dropped 16%.

Short Answer Questions

1. What did Long-Term avoid by working with derivatives instead of stocks?

2. Once in business, what did Long-Term have an easy time getting from banks?

3. What award did Merton and Scholes win for economics?

4. What did Long-Term risk losing if they allowed their assets to fall below five hundred million dollars?

5. In 1998, who published Meriwether's letter to his clients?

(see the answer key)

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