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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. What advantage did Milken's kind of debt offer?
(a) It was separate from bank loans and the bondholder could sell his bonds whenever he wanted
(b) It did not tie up cash the way loan repayments did.
(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.

2. What was Milken's problem with back office people at Drexel?
(a) He could not communicate with them.
(b) He was less educated than they were.
(c) He did not understand their work.
(d) He did not work well with Jewish people.

3. Who was Dr. Feelgood of Drexel?
(a) Lowell Milken
(b) Tubby Burnham
(c) Fred Joseph
(d) Michael Milken

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

5. What influenced Milken to become interested in low grade bond portfolios?
(a) the Morgan report on bond yields
(b) the Hickman study, an analysis of bond yields
(c) an unexpected profit from his own low grade bonds
(d) a course he took at Wharton

Short Answer Questions

1. Who becomes Milken's ally and public face in 1974?

2. What did Milken offer this market segment?

3. What was it about Milken that impressed his clients?

4. What was one thing Lowell Milken did for the company?

5. Why did Drexel Burnham Lambert agree to let Milken move his operation at a cost of millions of dollars?

(see the answer key)

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