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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. In 1993, what was happening more than usual in America?

2. How much money did Long-Term earn in 1996?

3. In order for Meriwether's Treasury futures investment to work, what did he need market prices to do?

4. What was the end result of Meriwether's Treasury bill deal?

5. What did Long-Term do when IOs started to fall?

Short Essay Questions

1. When Meriwether was building his team at the Arbitrage Group, what qualities did he look for?

2. When additional investors returned to the Italian market, what did Long-Term do?

3. How would a loan from a major bank help the partners at Long-Term make money?

4. Why did hedge funds make money for managers?

5. Why are hedge funds considered low risk?

6. By the time Long-Term had been in business for two years, how did it compare to other old Wall Street companies?

7. When investing in Italy, what did Long-Term avoid telling their customers?

8. What was Long-Term's objective in seeking out a bank to finance their credit?

9. Why did bonds lose their value in the 1970's?

10. When did Meriwether begin making sales calls for Long-Term?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

There were many warning signs that the profits delivered by Long-Term couldn't last. Yet, many companies did everything possible to keep some investments going at higher and higher levels when they should have slowed. Using greed as a theme, analyze this situation.

Essay Topic 2

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.

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)

This section contains 548 words (approx. 2 pages at 300 words per page) View a FREE sample