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This quiz consists of 5 multiple choice and 5 short answer questions through At the Fed.

Multiple Choice Questions

1. How long did Long-Term expect their investors to commit?
(a) 3 years.
(b) 3 months.
(c) 6 months.
(d) 1 year.

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

3. What was the limitation on borrowing for equity trading?
(a) 50%.
(b) 40%.
(c) 25%.
(d) 10%.

4. What notable player was on vacation during the crisis in Russia?
(a) The president of Russia.
(b) Warren Buffet.
(c) The president of the United States.
(d) Alan Greenspan.

5. How many employees were with Long-Term in 1996?
(a) Less than a dozen.
(b) A couple dozen.
(c) Five.
(d) Five hundred.

Short Answer Questions

1. What did Long-Term do when IOs started to fall?

2. What did Long-Term do with off-the-run bonds?

3. What put pressure on the currency in Brazil?

4. During the financial crisis in 1998, what did the partners keep from the workers?

5. Where was the London office for Long-Term located?

(see the answer key)

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