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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 15, Boesky Day.

Multiple Choice Questions

1. How did Milken's unit function within the larger firm?
(a) as the firm's banker
(b) as an integrated member of the firm
(c) as a front for other Drexel activities
(d) as a separate firm within Drexel

2. What did Milken offer this market segment?
(a) a protection from takeover
(b) ten cents on the dollar
(c) a new kind of debt instrument
(d) a hope for recovery

3. Where did Milken and his wife buy a house?
(a) Encino
(b) Beverley Hills
(c) San Clemente
(d) Santa Monica

4. To Drexel, what did certain concessions to clients mean?
(a) very little because they were so big
(b) having clients indebted to them
(c) a bad reputation among other investors
(d) more deals and more money down the road

5. What is it called when a firm decides to commit its own capital toward a takeover?
(a) marginal financing
(b) highway financing
(c) piggybacking
(d) bridge financing

Short Answer Questions

1. What was a cause of the market crash of 1974?

2. What advantage did Milken's kind of debt offer?

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

4. By 1981, what was Drexel responsible for?

5. Why did Atlantic Capital have to stop selling Wedvick's contracts?

(see the answer key)

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