The Rise and Fall of Barings Bank
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Questions and Answers

Which bank did Nick Leeson destroy?

  • Bank of France
  • Bank of Prussia
  • Bearings Bank (correct)
  • Bank of England

In what year did the story begin?

  • 1990
  • 1994
  • 1996
  • 1992 (correct)

What was Bearings Bank once considered?

  • The most powerful bank in Europe
  • The largest bank in Europe
  • The sixth great European power (correct)
  • The oldest bank in Europe

What did Nick Leeson do to achieve success?

<p>Fraudulent activities (C)</p> Signup and view all the answers

What was Nick Leeson's reputation in the foreign futures market?

<p>He was considered a whiz kid in the sense that he was responsible for 10% of Baring's yearly profits (B)</p> Signup and view all the answers

What led to Bearings downfall?

<p>Nick's employees accidentally bought futures contracts instead of selling them (B)</p> Signup and view all the answers

What did Nick do to compensate for the mistake made by his employee?

<p>He created an error account connected to the bank's funds (A)</p> Signup and view all the answers

How much money did the client lose due to the mistake?

<p>Twenty thousand pounds (B)</p> Signup and view all the answers

Why couldn't Nick simply add twenty thousand pounds to the client's account?

<p>He didn't have the funds to add to the client's account (A)</p> Signup and view all the answers

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