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

Multiple Choice Questions

1. Who helped Meriwether raise money for Long-Term?
(a) Salomon Brothers.
(b) No one.
(c) Merrill Lynch.
(d) Warren Buffet.

2. Who became the temporary CEO of Meriwether's group when scandal hit?
(a) J.F. Salomon.
(b) Paul Mozer.
(c) Warren Buffet.
(d) John Meriwether.

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

4. Where was the London office for Long-Term located?
(a) Winchester.
(b) Mayfair.
(c) Picadilly Square.
(d) Buckingham Palace.

5. What level of risk did Long-Term offer?
(a) None.
(b) Medium.
(c) Low.
(d) High.

Short Answer Questions

1. What happened to Meriwether's Treasury bill deal before it was resolved?

2. What typically happens to stock prices when a merger is revealed?

3. What was the limitation on borrowing for equity trading?

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

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

(see the answer key)

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