|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. What is the name of the Salomon Brothers when it becomes a corporation?
(a) Salomon Shearson Incorporated.
(b) Phibro Salomon Incorporated.
(c) First Salomon Incorporated.
(d) Salomon Brothers Incorporated.
2. What is it called when a trader offloads bonds down a customer's throat for the company's benefit?
3. What is more relevant than a bad joke because it moves markets?
(a) A fact.
(b) A documentary.
(c) A rumor.
(d) A book.
4. What are the European genus, English species, of slick financial people called?
5. Ranieri describes Tom Strauss as _____.
(a) A snake.
(b) A boob.
(c) A clown.
(d) A rabid dog.
Short Answer Questions
1. According to the author, investors don't fear losing money as much as they fear _____?
2. Who are the biggest shoppers for mortgage products?
3. What is the name of the standard of one hundred cents on the dollar?
4. What is the name of the Federal Housing Administration's approval to trade in whole loans?
5. What is the biggest most expensive real estate project in Manhattan on which Salomon Brothers bails out at a $107 million loss?
Short Essay Questions
1. What is selling short?
2. How does Lewie Ranieri feel about Michael Milken? How does this differ from John Gutfreund's opinion of him?
3. Despite the upheaval in the mortgage market, what is the initial objection that remains valid as the mortgage market evolves?
4. As the author gains more experience working in London, what does he think interests European traders that differs from American traders?
5. Why does one trader think that Mark Smith is not a Trojan Horse like some of the other traders believe?
6. Does Michael Milken consider himself a part of Drexel Burnham?
7. What is drifting away from Salomon Brothers and toward Drexel Burnham in 1987? Why?
8. What are the two kinds of friction at Salomon Brothers?
9. What are some of the bad habits mortgage traders have developed regarding the use of the Salomon Brothers expense account?
10. What is the particular need of thrifts in terms of investing in the mortgage bond market?
This section contains 779 words
(approx. 3 pages at 300 words per page)