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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 12, Milken's Money Machine.

Multiple Choice Questions

1. What was one thing Lowell Milken did for the company?
(a) make the coffee
(b) find tax shelters for them
(c) make political contacts
(d) keep out unwanted visitors

2. Where did most of the money come from when Icahn actually acquired ACF, a railroad car leasing company?
(a) Much of the purchase price came from the sale of some of the company's divisions.
(b) Ichan sold all of his Milken junk bonds.
(c) Ichan got the money from his uncle.
(d) Milken financed much of the price.

3. How did Milken decide to help Peltz?
(a) by underwriting $100 million in junk bonds for Triangle
(b) by making him a partner in his bond business
(c) by loaning him $10 million from his personal fortune
(d) by advision him how to avoid bankruptcy

4. What was a major factor in the failure of Beverly Hills Savings?
(a) large withdrawals by depositors
(b) rumors that Milken was taking it over
(c) huge losses in junk purchased from Drexel
(d) too many hostile takeover attempts

5. What company did Wedvick find with a high investment-grade rating?
(a) Clarendon, a Bermuda based reinsurance company
(b) Drexel
(c) Standard and Poors
(d) Mutual of Omaha

Short Answer Questions

1. What was a cause of the market crash of 1974?

2. What government regulation made it easier for multiple mergers in the 1980s?

3. What was the result of changes in the investment banking industry in the 1970s?

4. Who told Perelman that Revlon was not for sale?

5. What was Milken's biggest contribution to Drexel in the early years?

(see the answer key)

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