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. What resource close to Long-Term began to experience financial difficulties following the financial problems in Russia?

2. Who suspended arbitrage operations in April 1998?

3. In 1998, what type of contracts did Long-Term make with private entities?

4. When Long-Term met with the Fed, it was obvious they did not have enough money to make it through what?

5. When Russia first experienced turmoil, Long-Term was confident that what would happen?

Short Essay Questions

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

2. What was the Fed's response to Long-Term's exposure?

3. Who warned Long-Term about making trades that counted on falling stock prices?

4. What was the risk to the market if Long-Term unraveled?

5. Following the crisis in Russia, what position did investors take that adversely affected Long-Term?

6. In terms of the spreads in 1998, what was the difference between what Long-Term expected them to do and what they actually did?

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

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

9. What move did Salomon make that surprised Long-Term?

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

The investment requirements of Long-Term were quite stringent. Citing examples from the text, write an essay examining the investment requirements and opportunity for return for potential Long-Term investors.

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

The Fed has a major voice in the financial decisions in the United States. Examine the function of the Fed and the actions that it took that inadvertently played a part in Long-Term's success.

(see the answer keys)

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