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

Multiple Choice Questions

1. What did Long-Term risk losing if they allowed their assets to fall below five hundred million dollars?
(a) Their workers.
(b) Their office.
(c) The right to trade.
(d) Their relationships with bankers.

2. Where was Robert C. Merton working when Meriwether hired him?
(a) The Federal Exchange Commission.
(b) Harvard.
(c) Wall Street.
(d) NASA.

3. Who suspended arbitrage operations in April 1998?
(a) Goldman Sachs.
(b) Fidelity Bank and Trust.
(c) Salomon.
(d) Chase.

4. When Russia began to default on its loans, what did people start doing with their high risk bonds?
(a) Trading.
(b) Selling.
(c) Holding.
(d) Buying.

5. Once the financial market in Russia collapsed, what did people stop trading?
(a) Bonds.
(b) Corn.
(c) Stocks.
(d) Commodities.

Short Answer Questions

1. When did Long-Term begin scrambling to raise money?

2. What type of government paper was bought in Italy?

3. How much money did Meriwether need to start Long-Term?

4. In August 1998, how far down was Long-Term for the month?

5. In 1993, what was happening more than usual in America?

(see the answer key)

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