Final Test - Hard
|Name: _____________________________||Period: ___________________________|
This quiz consists of 5 short answer questions and 1 (of 3) essay topics.
Short Answer Questions
1. What was the common belief regarding nuclear powers?
2. What factor was forcing those with hedge funds to sell?
3. In the mid-1990's, what was the ratio of leverage on Wall Street?
4. What did the Fed Chairman want to remove in an effort to create liquidity in the market?
5. What was Long-Term's signature trade?
Write a brief essay supporting or refuting the following statement, citing examples from the text: The irresponsible management of Long-Term by the partners led to its downfall.
Write a brief essay supporting or refuting the following statement, citing examples from the text: Long-Term took part in risky investments as the market became over-saturated.
When Long-Term achieved major profits in its first year, Meriwether wrote a letter to investors warning against such a strong future performance.
1) Why did Meriwether feel it was important to communicate with his investors?
2) What warnings did Meriwether share with his investors?
3) Why did Meriwether feel it necessary to communicate at this level?
This section contains 210 words
(approx. 1 page at 300 words per page)