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This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 6, The Air Fund.

Multiple Choice Questions

1. What was Milken's biggest contribution to Drexel in the early years?
(a) an entry into the social circles of high-yield bond traders
(b) a study of the securities delivery system which cut the delivery time from five days to one
(c) engineering the change over to computers
(d) a recruiting system to get the brightest Ivy League graduates

2. What are REITs?
(a) real estate instruments like mortgages
(b) raw energy investment tables
(c) rare employee investment tallies
(d) really extended investment trials

3. What became the name of bonds that come into being during highly leveraged takeovers?
(a) Hot paper
(b) Chinese paper
(c) Paper trails
(d) Tickertape

4. What did Milken and Joseph devise to keep business flowing during the recession?
(a) different kinds of instruments
(b) finance services for the largest clients
(c) better communications with clients
(d) ways of trading abroad

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

Short Answer Questions

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

2. Why was Drexel Burnham's investment banking business diminished by 1975?

3. To troubled businesses, what was Drexel's unregistered exchange offer?

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

5. By 1981, what was Drexel responsible for?

(see the answer key)

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