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This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 5, The Cloister at Wilshire and Rodeo.

Multiple Choice Questions

1. With whom was the firm of Drexel Burnham Lambert identified by the late 1970s?
(a) Ronald Reagan
(b) Tubby Burnham
(c) Michael Milken
(d) Fred Joseph

2. How did the firm now have equity stakes in most of the companies that it financed?
(a) by buying stakes in many companies instead of financing them
(b) by demanding larger stakes in the companies
(c) by swapping Chinese paper for stock in the companies
(d) by using the firm's capital to finance the companies

3. What did Milken refuse to have in the Drexel annual report?
(a) his letter to the shareholders
(b) his photo and the organization of his staff
(c) the names of his staff
(d) a description of his operation

4. How did Milken and his wife travel to Los Angeles?
(a) by car
(b) by train
(c) by bus
(d) by private jet

5. What was Milken's biggest contribution to Drexel in the early years?
(a) a recruiting system to get the brightest Ivy League graduates
(b) engineering the change over to computers
(c) an entry into the social circles of high-yield bond traders
(d) a study of the securities delivery system which cut the delivery time from five days to one

Short Answer Questions

1. Why did the new Drexel Burnham company give Milken a $2 million position?

2. What did the Milken brothers do probably without notifying Drexel?

3. By 1986, who was the largest stockholder in Drexel Burnham Lambert?

4. What did Milken and Joseph devise to keep business flowing during the recession?

5. What was Milken's goal by the early 1970s?

(see the answer key)

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