View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 4, Merge with Mike.

Multiple Choice Questions

1. Why did the new Drexel Burnham company give Milken a $2 million position?
(a) Milken ochestrated the merger of Drexel and Burnham.
(b) Milken was thinking of leaving.
(c) Milken hid evidence from the SEC.
(d) Milken would be the token Jew.

2. What was the advantage FIFI and other like funds offer?
(a) more security than Treasury bonds
(b) a higher yield than Treasury bonds
(c) simplicity of buying
(d) better availability

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

4. What was it about Milken that impressed his clients?
(a) his connections with politicians and movie stars
(b) his knowledge and memory for details about every bond there was.
(c) his willingness to bargain when he sold them junk bonds
(d) his inside information about the junk bond companies

5. What was the result of changes in the investment banking industry in the 1970s?
(a) Regulations now made it harder to trade in junk bonds.
(b) Business concentrated in New York and Los Angeles.
(c) Many new firms came into existence and were soon taken over.
(d) Firms became highly competitive and business moved around.

Short Answer Questions

1. Where did Milken and his wife buy a house?

2. Why did Drexel have to separate from J. P. Morgan?

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

4. What benefit did Milken arrange for his low grade investment group for the next 14 years?

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

(see the answer key)

This section contains 350 words (approx. 2 pages at 300 words per page) View a FREE sample