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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 banks and investors use to estimate Long-Term's assets?

2. What affected bond trading in the 1970's?

3. What group did Meriwether found in 1977?

4. In the 1970's, what type of trading was considered dull?

5. Where was the Long-Term Capital Portfolio stored?

Short Essay Questions

1. In 1996, which significant companies did Long-Term surpass in terms of assets?

2. What did Long-Term do to limit risk in bond trading?

3. Why were convergence trades the safest trades made by Long-Term?

4. On what did Long-Term base the claim that it was difficult to lose money with them?

5. How did Long-Term respond to firms that would not waive the fee for the haircut?

6. What was Meriwether's group at Salomon given the authority to do?

7. When investing in Italy, what did Long-Term avoid telling their customers?

8. Why did Meriwether increase his position on Treasury Bill futures in spite of the market fluctuation?

9. Why was the investment in Italy a risky one for Long-Term to make?

10. How would a loan from a major bank help the partners at Long-Term make 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 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 Fed has a major voice in the financial decisions in the United States. Examine the function of the Fed and the actions that it took that inadvertently played a part in Long-Term's success.

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This section contains 504 words (approx. 2 pages at 300 words per page) View a FREE sample