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This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 4, Merge with Mike.

Multiple Choice Questions

1. What was the purpose of Fred Joseph's meeting at the Barbizon Plaza in New York?
(a) consideration of all ideas, even the far-out and the flamboyant, instead of the conservative
(b) gathering inside information to take back to Los Angeles
(c) pirating talent from some of the biggest firms on Wall Street
(d) to undermine Milken and take over control of the Department

2. Where did Milken and his wife buy a house?
(a) Encino
(b) Santa Monica
(c) San Clemente
(d) Beverley Hills

3. When he heard on the radio about a change in options to buy stocks, what did Milken do that saved Drexel Burnham Lambert?
(a) stopped in St. Louis and started buying
(b) turned around and went back
(c) cabeled DBL to warn them
(d) made calls from pay phones

4. What was Drexel's only real competition by the 1980s?
(a) Merrill Lynch
(b) Lehman Brothers
(c) Morgan Stanley
(d) Barnes and Noble

5. Why did Drexel have to separate from J. P. Morgan?
(a) the enactments of the Glass-Steagall Act in 1934
(b) the regulations of the sherman Anti-Trust Act
(c) a disagreement between Drexel and Morgan
(d) the final break up of J. P. Morgan and Company

Short Answer Questions

1. How did the firm now have equity stakes in most of the companies that it financed?

2. What did Milken offer this market segment?

3. What was it about Milken that impressed his clients?

4. Why did Drexel remain a privately-held company?

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

(see the answer key)

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