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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Ranieri is the guru of the _____ industry.
(a) Restaurant.
(b) Thrift.
(c) Dream.
(d) Junk bond.

2. Michael Milken works for which company?
(a) First Boston.
(b) Salomon Brothers.
(c) Drexel Burnham.
(d) Goldman Sachs.

3. CMO's are divided into slices, or _____.
(a) Tranches.
(b) Departments.
(c) Compartments.
(d) Branches.

4. "The opportunist" is sane in every respect except that his _____ was stratospheric.
(a) Accumulated wealth.
(b) Self-loathing.
(c) Self-importance.
(d) Accumulated debt.

5. Gutfreund is treated like a _____ in London.
(a) Gauche American tourist.
(b) Brother.
(c) King.
(d) Crazy uncle.

6. What is the word that means trading riskily for profit?
(a) Arbitration.
(b) Arbitrage.
(c) Swapping.
(d) Selling short.

7. What is Latin for "buyer beware"?
(a) Quid pro quo.
(b) Meum dictum pactum.
(c) Caveat emptor.
(d) Semper fedelis.

8. What is the name of the Salomon Brothers when it becomes a corporation?
(a) Phibro Salomon Incorporated.
(b) First Salomon Incorporated.
(c) Salomon Shearson Incorporated.
(d) Salomon Brothers Incorporated.

9. What spins out of control at Salomon Brothers in 1987?
(a) Costs.
(b) Trader's risks.
(c) Manager's demans.
(d) New hirings.

10. Ranieri is characterized by the author as perhaps the first _____ in the history of Wall Street.
(a) Democrat.
(b) Populist.
(c) Communist.
(d) Confedrate.

11. According to the author, what is the rarest and most valuable asset a Wall Street firm can possess?
(a) A high cash flow.
(b) A good manager.
(c) A Howie Ruben.
(d) A monopoly.

12. This person is charged with coordinating all deals on the trading floor.
(a) A syndicate manager.
(b) A corporate coordinator.
(c) A money market chairperson.
(d) A portfolio manager.

13. Mike Milkin of Drexel Burnham is the guru of _____.
(a) Municipal bonds.
(b) Mortgage bonds.
(c) Junk bonds.
(d) Government bonds.

14. What do rating services rely exclusively on to assess a company's creditworthy status?
(a) The past.
(b) The present.
(c) Its earnings.
(d) The future.

15. The author considers Bill Voute a _____.
(a) Mystery.
(b) Shyster.
(c) Derelict.
(d) King.

Short Answer Questions

1. Tokyo is seemingly the obvious site for Salomon Brothers' global expansion because of Japan's _____.

2. What book does Conni Bruck write?

3. Who writes the book, On War?

4. Ranieri tells Gutfreund that he is selling the [mortgage bond] technology for a _____.

5. What is jargon for a gamble that is sure to succeed?

(see the answer keys)

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