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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. What was the result of changes in the investment banking industry in the 1970s?
(a) Many new firms came into existence and were soon taken over.
(b) Business concentrated in New York and Los Angeles.
(c) Firms became highly competitive and business moved around.
(d) Regulations now made it harder to trade in junk bonds.

2. What was a cause of the market crash of 1974?
(a) low prices and a lot of bargains among companies
(b) a slow down of foreign business
(c) stock prices soaring
(d) economic inflation in Asia

3. Who was behind the success of both First Executive and Columbia Savings?
(a) Mike Milken
(b) Thomas Spiegle
(c) Lowell Milken
(d) Fred Carr

4. What was the advantage FIFI and other like funds offer?
(a) simplicity of buying
(b) a higher yield than Treasury bonds
(c) more security than Treasury bonds
(d) better availability

5. How did Drexel get around the law and continue the takeovers?
(a) by lobbying to get the rules overturned
(b) by using preferred stock instead of bonds as a means of financing
(c) by creating dummy companies to made the acquisitions
(d) by using offshore banks to finance their deals

Short Answer Questions

1. How much money and how fast did Drexel raise for the Phillips Petroleum proxy fight?

2. Why did Drexel want Carl Icahn as a client?

3. What did Joseph need to achieve his goal of making Drexel a world-class institution?

4. What was the Milken philosophy?

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

(see the answer key)

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