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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 resource close to Long-Term began to experience financial difficulties following the financial problems in Russia?

2. In 1998, what act led Long-Term to a fall?

3. When Russia began to default on its loans, what did people start doing with their high risk bonds?

4. In 1998, what market did Long-Term bet would decline?

5. By the end of August 1998, what market had practically stopped trading altogether?

Short Essay Questions

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

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

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

4. Who warned Long-Term about making trades that counted on falling stock prices?

5. When Meriwether reached out to his clients following the Russian crisis, how did he explain the effect of the situation in Russia?

6. Why did banks and investment banks get involved in the derivatives market?

7. What move did Salomon make that surprised Long-Term?

8. Who was Jon Corzine?

9. What did Standard & Poor downgrade that would affect Long-Term significantly?

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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.

Essay Topic 2

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 3

Basing your answer on the height of Long-Term's career, compare and contrast several of the companies on Wall Street with Long-Term, citing examples from the text.

(see the answer keys)

This section contains 554 words (approx. 2 pages at 300 words per page) View a FREE sample