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

2. Why was Milken so interested in low grade bonds?
(a) that was all he could afford
(b) he liked to gamble big time
(c) they were the only ones he really understood
(d) equity offerings were not an option for the Drexel Burnham market

3. For whom did Milken do trading?
(a) only for family and friends to keep attention away from himself
(b) just for Drexel Burnham Lambert because of the volume of work
(c) not only for customers, but also his own account and his group's account
(d) only for himself now because he was making so much money

4. Keeping New York office hours, at what time did they begin work in L. A.?
(a) 4:30 a.m.
(b) 6:30 a.m.
(c) 10:00 a.m.
(d) 7:00 a.m.

5. What commission did Drexel make on these funds?
(a) five eighths of a percent
(b) one percent
(c) seven eighths of a percent
(d) three quarters of a percent

Short Answer Questions

1. What kind of business did Milken's Belvedere Securities do?

2. What did Milken and Joseph devise to keep business flowing during the recession?

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

4. Who are two examples of Milken clients who became quite wealthy?

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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