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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 12, Milken's Money Machine.

Multiple Choice Questions

1. What was Drexel able to do that made it so successful?
(a) to hear about acquisitions before anyone else
(b) to get around banking laws
(c) to place the unsecured debt that banks wouldn't touch
(d) to avoid reporting many of the transactions

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

3. Why did Atlantic Capital have to stop selling Wedvick's contracts?
(a) It became over-extended and faced bankruptcy.
(b) Pressure on Kansa came from Standard and Poor's and a downgrade to an A-rating.
(c) Wedvick's contracts became worthless.
(d) Drexel bought them out.

4. What was the purpose of Fred Joseph's meeting at the Barbizon Plaza in New York?
(a) gathering inside information to take back to Los Angeles
(b) pirating talent from some of the biggest firms on Wall Street
(c) to undermine Milken and take over control of the Department
(d) consideration of all ideas, even the far-out and the flamboyant, instead of the conservative

5. What are two other notable takeovers done by Perelman after Revlon?
(a) CPC International and Transworld Corporation
(b) NBC-TV and Hertz Rent a Car
(c) Warner Brothers Studios and Coca Cola
(d) Hearst Corporation and Ford Motor Company

Short Answer Questions

1. What is it called when someone holds a financial advantage over a company to force a sale?

2. Eventually, what did First Federal and Columbia Savings become?

3. What was another company Wedvick used in his investment scheme?

4. What company did Wedvick find with a high investment-grade rating?

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

(see the answer key)

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