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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 Fed Chairman want to remove in an effort to create liquidity in the market?

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

3. What determines the swap rate in a country?

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

5. After the first bad year experienced by Long-Term, what did its overall record look like?

Short Essay Questions

1. Who was Jon Corzine?

2. What contributes to the estimation of market volatility?

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

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

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

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

7. In 1997, what was Meriwether encouraging his employees to do?

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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

Essay Topic 2

When Long-Term achieved major profits in its first year, Meriwether wrote a letter to investors warning against such a strong future performance.

1) Why did Meriwether feel it was important to communicate with his investors?

2) What warnings did Meriwether share with his investors?

3) Why did Meriwether feel it necessary to communicate at this level?

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 506 words (approx. 2 pages at 300 words per page) View a FREE sample