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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 did the incident on August 21 cost Long-Term?

2. In the mid-1990's, what was the ratio of leverage on Wall Street?

3. After the meeting with the Fed, a market movement of what percentage could have ended Long-Term?

4. What was the result for some banks due to their involvement in the derivatives market?

5. What was the leverage of Long-Term, following its meeting with the Fed?

Short Essay Questions

1. Why did the issue in Russia cost Long-Term money on an initial basis?

2. When did huge losses begin for Long-Term and why?

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

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

5. What contributes to the estimation of market volatility?

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

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

8. By the end of August 1998, what did the movement in the bond market look like?

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

10. Who was Jon Corzine?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Examine one of the following forms of investment vehicles:

- Hedge funds.

- Value funds.

- Bonds.

Answering the follow questions:

- What are the principals of this form of investment?

- What was Meriwether's experience with this form of investment?

- To what extent did the general public participate in this form of investment?

Essay Topic 2

When Meriwether set up Long-Term, he had to take many steps to create the company. Write an essay examining the process Meriwether went through to create Long-Term.

Essay Topic 3

Those involved at the top levels of Long-Term were given respect, money and opportunity. Write a brief essay analyzing some of the advantages a career at Long-Term gave many of the partners, citing examples from the text.

(see the answer keys)

This section contains 510 words (approx. 2 pages at 300 words per page) View a FREE sample