2. Who at Drexel became a problem because of a lawsuit by Beverly Hills Savings and Loan?
(a) Jim Dahl
(b) Martin Siegel
(c) Fred Joseph
(d) Carl Ichan

3. What was Perelman planning to do when he took over Pantry Pride in 1985?
(a) to use Pantry Pride and its income sheltering tax loss to acquire Revlon
(b) to run the business and get out of doing takeovers
(c) to create positions for his sons and other family members.
(d) to make Pantry Pride attractive to other supermarkets

4. What did Grant say the public was competing for at that point?
(a) for securities of high and higher yield - and poorer quality
(b) for ownership in television stations and newspapers
(c) for invitations to the Preditors' Ball
(d) for more and more media attention

5. 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.

6. What was beginning to happen during this time?
(a) Junk bonds began to disappear from the market.
(b) Junk bonds were becoming poorer in quality and there were more bankruptcies and defaults
(c) Unemployment shot up as a results of the mergers and acquisitions.
(d) People were making vast amounts of money trading junk bonds.

7. In many ways, what became the role of Milken?
(a) the role of enquirer
(b) the rold of peacemaker
(c) the role of enforcer
(d) the role of adviser

8. What was another company Wedvick used in his investment scheme?
(a) Banco de Mexico
(b) Kansa General Insurance Company in Helsinki, Finland
(c) Barzil International Insurance
(d) Caribbean Investment Corporation

9. On May 12, 1986, who was charged with insider trading and agreed to cooperate with the government?
(a) Dennis Levine
(b) Fred Joseph
(c) Car Icahn
(d) Lowell Milken

10. What indicated the level of fear at Drexel during the investigations?
(a) Many employees were leaving the firm.
(b) All bonuses were cancelled.
(c) Drexel began firing employees.
(d) Joseph resigned as CEO.

11. What did Kansa and Clarendon both have that Wedvick needed?
(a) AA rating
(b) excess capital
(c) corrupt employees
(d) no supervision

12. In what was Atlantic Capital involved?
(a) ponzi schemes
(b) forging bond documents
(c) unmonitored investments
(d) selling bond coupons

13. What was Peer Wedvick devising?
(a) flipping houses and commercial buildings
(b) a scheme to sell contracts involving housing funds
(c) money laundering
(d) buying commercial paper

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

15. For what did Boesky claim a $5.3 million payment was made to Drexel?
(a) investing in Drexel
(b) buying back bonds
(c) consulting
(d) a loan to Drexel