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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. To troubled businesses, what was Drexel's unregistered exchange offer?
(a) a way of using stocks or bonds to meet the interest obligations
(b) trading under the table
(c) lowering their interest rates to businesses
(d) creating additional Chinese paper

2. What were Milken's results the first year in his new position at Drexel Burnham?
(a) 10% profit
(b) 100% profit
(c) Break even
(d) Fewer clients

3. How did Milken break into the Las Vegas gambling business community?
(a) Milken helped Steve Wynn raise the funds he needed to build in Atlantic City.
(b) Milken lowered his commissions to get large casino business.
(c) Milken showed the casino owners how they could double their income.
(d) Milken traveled every weekend to gamble in Las Vegas.

4. What was Fred Joseph's strategy for hiring employees for Drexel?
(a) overhiring to learn which are the ones to keep
(b) hiring from the smaller firms so that they saw it as a step up
(c) paying higher commissions than anyone else
(d) getting recommendations from bigger firms

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

Short Answer Questions

1. For whom did Milken do trading?

2. What was the purpose of Fred Joseph's meeting at the Barbizon Plaza in New York?

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

4. What two large companies did Drexel underwrite bond issues for in a ten-day period?

5. What was Drexel's only real competition by the 1980s?

(see the answer key)

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