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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. What year was the Federal Reserve System created?
(a) 1950.
(b) 1995.
(c) 1913.
(d) 1901.
2. After the meeting with the Fed, a market movement of what percentage could have ended Long-Term?
(a) 25%.
(b) 30%.
(c) 1%.
(d) 10%.
3. What was the climate at Long-Term during the Russian financial crisis?
(a) Standard.
(b) Nervous.
(c) Excited.
(d) Confident.
4. After the first bad year experienced by Long-Term, what did its overall record look like?
(a) Typical.
(b) Terrible.
(c) Mediocre.
(d) Fantastic.
5. What typically happens to stock prices when a merger is revealed?
(a) They go down.
(b) They crash.
(c) They go up.
(d) They stay the same.
Short Answer Questions
1. What did Long-Term risk losing if they allowed their assets to fall below five hundred million dollars?
2. What was the result for some banks due to their involvement in the derivatives market?
3. What was the internal climate at Long-Term in 1998?
4. When did Long-Term start losing money?
5. What put pressure on the currency in Brazil?
Short Essay Questions
1. Who was Jon Corzine?
2. Following the financial crisis in Russia, what did the partners do to begin raising money?
3. By the end of August 1998, what did the movement in the bond market look like?
4. What did Long-Term do when they expected stock prices to fall?
5. In 1997, what was Meriwether encouraging his employees to do?
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. What was the financial climate when Merton and Scholes were awarded the Nobel Prize?
9. In spite of the economic crisis in Russia, what did Meriwether believe about Long-Term's trades?
10. Since Long-Term expected stock prices would fall, what did they sell insurance against?
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This section contains 506 words (approx. 2 pages at 300 words per page) |
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