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This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 3, Transformation.

Multiple Choice Questions

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

2. Why did Drexel Burnham Lambert agree to let Milken move his operation at a cost of millions of dollars?
(a) Milken was then major stock holder in the company.
(b) Milken had some inside information he could use in L. A.
(c) Milken threatened to leave.
(d) Milken was responsible for almost all of the firm's profits.

3. Who moved to Los Angeles with Milken?
(a) several Wall Street firms
(b) most of his relatives
(c) most of his staff
(d) most of his friends

4. What advantage did Milken's kind of debt offer?
(a) It did not tie up cash the way loan repayments did.
(b) It was separate from bank loans and the bondholder could sell his bonds whenever he wanted
(c) It was done under the table so the banks did not know about it.
(d) It was easier to use than getting a bank loan.

5. What did Milken's involvement in this business do for him personally?
(a) He finally gained respect from Burnham.
(b) He married a movie star.
(c) He became very wealthy.
(d) He was finally able to take the train.

Short Answer Questions

1. What influenced Milken to become interested in low grade bond portfolios?

2. What was Milken's problem with back office people at Drexel?

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

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

5. How did Milken break into the Las Vegas gambling business community?

(see the answer key)

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