|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What is the name of the standard of one hundred cents on the dollar?
2. What do rating services rely exclusively on to assess a company's creditworthy status?
3. What is more relevant than a bad joke because it moves markets?
4. CMO's are divided into slices, or _____.
5. A sticking point in making mortgage securities work is the homeowner's right to _____ his mortgage.
Short Essay Questions
1. The author is convinced that the worst thing a man can do with a telephone without breaking the law is what?
2. Why do costs at Salomon Brothers seem to suddenly matter in 1985?
3. How does Bear Stearns take the $250 million loss that Howie Rubin incurs at Merrill Lynch?
4. What is selling short?
5. How does Lewie Ranieri feel about Michael Milken? How does this differ from John Gutfreund's opinion of him?
6. As the author gains more experience working in London, what does he think interests European traders that differs from American traders?
7. Do bosses at Salomon Brothers think badly of employees who are not at their telephones all the time? Why or why not?
8. What is happening in colleges in Britain by the end of 1986?
9. From the moment the Federal Reserve lifted interest rates in October 1979, what happens to the thrifts?
10. What are some of the bad habits mortgage traders have developed regarding the use of the Salomon Brothers expense account?
Write an essay for ONE of the following topics:
Essay Topic 1
What contributes to the rapid and complete deterioration of Ranieri and Co. at Salomon Brothers? What was the achievement that Ranieri had hoped for in creating the mortgage department? How did the market affect the imbalance between Ranieri and Co. and the rest of the bond trading world?
Essay Topic 2
What is the perception of "corporate finance" in the investment banking industry? What does someone in corporate finance actually do? What role does and investment banking analyst play in relation to corporate financiers?
Essay Topic 3
According to Andy Stone, what effect does Wall Street's tendency to make its best producers into managers have on firms? What happens to managers once they achieve the position? Is it a good system overall?
This section contains 786 words
(approx. 3 pages at 300 words per page)