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This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 3, Transformation.

Multiple Choice Questions

1. What was it about Milken that impressed his clients?
(a) his knowledge and memory for details about every bond there was.
(b) his connections with politicians and movie stars
(c) his willingness to bargain when he sold them junk bonds
(d) his inside information about the junk bond companies

2. What became the name of bonds that come into being during highly leveraged takeovers?
(a) Paper trails
(b) Hot paper
(c) Chinese paper
(d) Tickertape

3. What was Milken's biggest contribution to Drexel in the early years?
(a) engineering the change over to computers
(b) a study of the securities delivery system which cut the delivery time from five days to one
(c) a recruiting system to get the brightest Ivy League graduates
(d) an entry into the social circles of high-yield bond traders

4. Who dominated the market in junk bond funds from 1978 on?
(a) Lehman Brothers
(b) Drexel
(c) Fidelity
(d) Morgan Investments

5. How did Milken break into the Las Vegas gambling business community?
(a) Milken lowered his commissions to get large casino business.
(b) Milken helped Steve Wynn raise the funds he needed to build in Atlantic City.
(c) Milken traveled every weekend to gamble in Las Vegas.
(d) Milken showed the casino owners how they could double their income.

Short Answer Questions

1. What was the address of the new building in L. A.?

2. What was one thing Lowell Milken did for the company?

3. What advantage did Milken's kind of debt offer?

4. Where did Milken and his wife buy a house?

5. What influenced Milken to become interested in low grade bond portfolios?

(see the answer key)

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