When Genius Failed Test | Final Test - Hard

Roger Lowenstein
This set of Lesson Plans consists of approximately 99 pages of tests, essay questions, lessons, and other teaching materials.
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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. When the Fed visited Long-Term, what did Hilibrand show them?

2. In 1996, what was Meriwether encouraging Long-Term to do?

3. On what date did Russia declare a debt moratorium?

4. In a letter to clients, to what did Long-Term attribute the decrease in profits?

5. What companies were selling bonds for Russia?

Short Essay Questions

1. What contributes to the estimation of market volatility?

2. What strategy led to Long-Term's downfall during the Russian financial crisis?

3. How much of Long-Term did the Union Bank of Switzerland buy on a hedge?

4. Who was Jon Corzine?

5. What did the Fed determine would happen if Long-Term failed?

6. Why were regulators concerned about the volume of banks and investment banks involved in the derivatives market?

7. What did Standard & Poor downgrade that would affect Long-Term significantly?

8. In spite of the economic crisis in Russia, what did Meriwether believe about Long-Term's trades?

9. Following the financial crisis in Russia, what did the partners do to begin raising money?

10. When Meriwether reached out to his clients following the Russian crisis, how did he explain the effect of the situation in Russia?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

When Long-Term was faced with financial turmoil, it took only five weeks for it to lose staggering amounts of money. Examine the following points:

1) What was the financial profile of Long-Term prior to Russia's debt default?

2) What did the financial profile change so drastically?

3) What moves did Long-Term make to correct the situation and why were they ineffective?

Essay Topic 2

In the late 1970's, the financial climate was changing due to technology. Examine the changes this brought about in the financial market and how these changes directly affected Meriwether.

Essay Topic 3

Meriwether began his career at Salomon Brothers before starting Long-Term. Write a detailed profile of his career path at Salomon Brothers, answering the following questions.

1) What risk did Meriwether take at Salomon Brothers?

2) What were the challenges and rewards?

3) Why did his career at Salomon Brothers come to an end?

(see the answer keys)

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