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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. During the turmoil of 1998, investors avoided Long-Term because they were trying to avoid what?

3. In 1997, who awarded Long-Term the loan warrant it had requested?

4. Who did Long-Term threaten to sue, following a threat not to clear trades?

5. In 1998, Long-Term expected prices to do what?

Short Essay Questions

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

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

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

4. What did Long-Term do when they expected stock prices to fall?

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

6. What was the Fed's response to Long-Term's exposure?

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

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

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

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

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

Meriwether enjoyed building strong teams to work with. Write a brief essay examining the qualities he sought out in his team members.

Essay Topic 3

The international market provided Long-Term with a substantial opportunity for success. Write an essay examining Long-Term's initial involvement in the international market and the results of this investment.

(see the answer keys)

This section contains 471 words (approx. 2 pages at 300 words per page) View a FREE sample