Financial Fraud And Ethics: A Quiz On Rogue Trader

1. Why was Nick Lesson transferred to Singapore from his firm's Indonesia office?

He had a very successful working spell in Indonesia.

He didn't perform well.

He used to stay sick.

He couldn't understand the local language.

Nick Lesson was transferred to Singapore from his firm's Indonesia office because he had a very successful working spell in Indonesia. This suggests that his performance in Indonesia was outstanding, leading to his promotion or transfer to a higher position in Singapore.

Explanation

Nick Lesson was transferred to Singapore from his firm's Indonesia office because he had a very successful working spell in Indonesia. This suggests that his performance in Indonesia was outstanding, leading to his promotion or transfer to a higher position in Singapore.

2. What was the job of Nick Lesson?

Real Estate Agent

Derivatives Broker

Chef

Bartender

Nick Leeson was a derivatives broker. This means that his job involved buying and selling financial instruments, such as options and futures contracts, based on the underlying assets. As a derivatives broker, Leeson would have been responsible for managing and executing trades on behalf of clients, as well as monitoring market trends and analyzing risk. His role would have required a deep understanding of financial markets and the ability to make informed decisions to maximize profits for his clients.

Explanation

Nick Leeson was a derivatives broker. This means that his job involved buying and selling financial instruments, such as options and futures contracts, based on the underlying assets. As a derivatives broker, Leeson would have been responsible for managing and executing trades on behalf of clients, as well as monitoring market trends and analyzing risk. His role would have required a deep understanding of financial markets and the ability to make informed decisions to maximize profits for his clients.

3. How does Nick Lesson find out that Barings Bank has gone bankrupt?

His wife tells him

He reads about it in the newspaper.

The police inform him.

None of the above

Nick Leeson finds out that Barings Bank has gone bankrupt by reading about it in the newspaper. This implies that he was not informed by his wife or the police, and there are no other options given.

Explanation

Nick Leeson finds out that Barings Bank has gone bankrupt by reading about it in the newspaper. This implies that he was not informed by his wife or the police, and there are no other options given.

4. Why didn't Nick Lesson complete his sentence of six and a half years in jail?

He was diagnosed with tuberculosis.

He was acquitted.

He was released on bail because of his good behavior in jail.

He was diagnosed with colon cancer.

Nick Leeson did not complete his sentence of six and a half years in jail because he was diagnosed with colon cancer. This medical condition likely required him to receive treatment and medical care outside of the prison facility, leading to his early release.

Explanation

Nick Leeson did not complete his sentence of six and a half years in jail because he was diagnosed with colon cancer. This medical condition likely required him to receive treatment and medical care outside of the prison facility, leading to his early release.

5. In which bank did Nick Lesson work?

Franklin National Bank

Bank of England

Barings Bank

UBS

Nick Leeson worked at Barings Bank.

Explanation

Nick Leeson worked at Barings Bank.

6. The movie is based on the book "Rogue Trader: How I Brought Down Barings Bank and Shook the Financial World." Who is the author of this book?

Michael Lewis

Nick Leeson

Peter Lynch

Robert Kiyosaki

The correct answer is Nick Leeson. The explanation is that Nick Leeson is the author of the book "Rogue Trader: How I Brought Down Barings Bank and Shook the Financial World." This book tells the story of Leeson's role in the collapse of Barings Bank, one of the oldest and most prestigious banks in the UK. Leeson was a trader for Barings Bank and his risky and unauthorized trading activities led to massive losses that ultimately caused the bank's downfall.

Explanation

The correct answer is Nick Leeson. The explanation is that Nick Leeson is the author of the book "Rogue Trader: How I Brought Down Barings Bank and Shook the Financial World." This book tells the story of Leeson's role in the collapse of Barings Bank, one of the oldest and most prestigious banks in the UK. Leeson was a trader for Barings Bank and his risky and unauthorized trading activities led to massive losses that ultimately caused the bank's downfall.

7. SIMEX, which is featured in the movie, is a futures exchange of _____________.

Indonesia

Malaysia

Singapore

Switzerland

SIMEX, featured in the movie, is a futures exchange of Singapore. This means that SIMEX is a platform where individuals and organizations can trade futures contracts in Singapore. The movie likely includes SIMEX to showcase the financial and trading activities in Singapore, highlighting its significance as a global financial hub.

Explanation

SIMEX, featured in the movie, is a futures exchange of Singapore. This means that SIMEX is a platform where individuals and organizations can trade futures contracts in Singapore. The movie likely includes SIMEX to showcase the financial and trading activities in Singapore, highlighting its significance as a global financial hub.

8. What was the amount of the losses of Barings Bank, forcing Nick Lesson's escape to Malaysia?

Over £100 million

Over £500 million

Over £600 million

Over £800 million

Barings Bank suffered losses of over £800 million, which led to Nick Leeson's escape to Malaysia. This significant amount of losses indicates the severity of the financial crisis faced by the bank, ultimately resulting in its collapse.

Explanation

Barings Bank suffered losses of over £800 million, which led to Nick Leeson's escape to Malaysia. This significant amount of losses indicates the severity of the financial crisis faced by the bank, ultimately resulting in its collapse.