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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 10, 'Drexel is like a God'.

Multiple Choice Questions

1. For whom did Milken do trading?
(a) only for family and friends to keep attention away from himself
(b) just for Drexel Burnham Lambert because of the volume of work
(c) only for himself now because he was making so much money
(d) not only for customers, but also his own account and his group's account

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

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

4. Why was Milken so interested in low grade bonds?
(a) equity offerings were not an option for the Drexel Burnham market
(b) they were the only ones he really understood
(c) he liked to gamble big time
(d) that was all he could afford

5. What was Drexel able to do that made it so successful?
(a) to hear about acquisitions before anyone else
(b) to get around banking laws
(c) to place the unsecured debt that banks wouldn't touch
(d) to avoid reporting many of the transactions

Short Answer Questions

1. Who was Dr. Feelgood of Drexel?

2. Who did Joseph hire with a three-year contract calling for $3 million per year plus extras?

3. What is a proxy fight?

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

5. Why were Milken's imitators not as successful as he was?

(see the answer key)

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