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

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

3. When did Long-Term start losing money?

4. When the Fed visited Long-Term, what did Hilibrand show them?

5. What did Long-Term risk losing if they allowed their assets to fall below five hundred million dollars?

Short Essay Questions

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

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

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

4. What contributes to the estimation of market volatility?

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

6. What was the goal of the Federal Reserve when it was created?

7. During the financial crisis in 1998, where were the partners finding money?

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Meriwether began his career at Salomon Brothers before starting Long-Term. Write a detailed profile of his career path at Salomon Brothers, answering the following questions.

1) What risk did Meriwether take at Salomon Brothers?

2) What were the challenges and rewards?

3) Why did his career at Salomon Brothers come to an end?

Essay Topic 2

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.

Essay Topic 3

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.

(see the answer keys)

This section contains 559 words (approx. 2 pages at 300 words per page) View a FREE sample