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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 the address of the new building in L. A.?
(a) Avenue of the Stars in Century City
(b) Hollywood and Vine
(c) Sunset and Vine
(d) Rodeo Drive and Wilshire

2. What was the Wall Street attitude toward low grade bonds at the time Milken started trading in them?
(a) They were used as charitable donations.
(b) Then were used for scratch paper.
(c) They were unknown to Wall Street.
(d) They were looked down on.

3. Why was Drexel Burnham's investment banking business diminished by 1975?
(a) It had nothing to sell.
(b) The bigger firms were copying its business model.
(c) Most of the major customers had fled.
(d) Bond prices had risen too high.

4. What two large companies did Drexel underwrite bond issues for in a ten-day period?
(a) Paramount Pictures and General Motors
(b) Disney Studios and the LA Dodgers
(c) Boeing Aricraft and United Supermarkets
(d) MGM/UA Entertainment Company and MCI Communications

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

Short Answer Questions

1. Why did the new Drexel Burnham company give Milken a $2 million position?

2. When were the tax laws changed to minimize the benefits of stripping?

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

4. Keeping New York office hours, at what time did they begin work in L. A.?

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

(see the answer key)

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