This quiz works best with JavaScript enabled. Home > Finance > Investments > Investment Banking > Investment Banking – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Real estate investment means A) Investment in houses. B) Investment in flats. C) Investment in bungalows. D) All of these. Show Answer Correct Answer: D) All of these. 2. Why might there be a rise in investment bankers in the future? What causes this trend? A) The high income despite the pandemic. B) It is very easy to get into school for it. C) The increase in technology that sparks interest for lots of this generation. D) None of above. Show Answer Correct Answer: C) The increase in technology that sparks interest for lots of this generation. 3. Merchant banks deal with funds raised through ..... and capital market. A) Secondary Market. B) Primary Market. C) Money market. D) Securities market. Show Answer Correct Answer: C) Money market. 4. ..... is regarded as the fourth element of the financial system. A) Financial instruments. B) Financial institutions. C) Financial services. D) Financial markets. Show Answer Correct Answer: C) Financial services. 5. Preferred stock allows you to vote but does not guarantee a set dividend. A) False. B) True. Show Answer Correct Answer: A) False. 6. How many hours average does an investment banker work per week? A) 105 hours. B) 120 hours. C) 45 hours. D) 70 hours. Show Answer Correct Answer: A) 105 hours. 7. The Dealing Room in the Treasury organization is in the following section: A) Back Office. B) Branches. C) Middle Office. D) Front Office. Show Answer Correct Answer: D) Front Office. 8. These are the problems in achieving acquisition success except: A) Integration difficulties. B) Managers overly focused on acquisitions. C) Evaluation of performance. D) Inability to achieve synergy. Show Answer Correct Answer: C) Evaluation of performance. 9. Who spreads awareness about mutual funds in india? A) SBI. B) Bank of Baroda. C) AMFI. D) ICICI. Show Answer Correct Answer: C) AMFI. 10. International investment banking operational system A) Front Office. B) Middle Office. C) Back Office. D) All answer. Show Answer Correct Answer: D) All answer. 11. Investment bank functions: A) Trade Finance. B) Project Financing. C) Credit card. D) Working capital financing. Show Answer Correct Answer: B) Project Financing. 12. Real estate and collecting items such as coins and stamps are also examples of investing. A) False. B) True. Show Answer Correct Answer: B) True. 13. The Payback Period (PBP) will always select the investment that A) Gives the highest rate of return. B) Returns the cost of investment first. C) Has the highest total net cash flow. D) None of above. Show Answer Correct Answer: B) Returns the cost of investment first. 14. The following are all methods of investment appraisal, EXCEPT: A) Balance sheet return. B) Discounted Payback period. C) Net present value. D) Payback period. Show Answer Correct Answer: A) Balance sheet return. 15. Which type of prospectus is Red Herring? A) Preliminary prospectus. B) Final prospectus. Show Answer Correct Answer: A) Preliminary prospectus. 16. In terms of business accounts and finance, an investment is A) Purchasing new capital equipment. B) Returning dividends to shareholders. C) Having retained earnings receiving interest in the bank. D) Financing a long-term bank loan paying interest. Show Answer Correct Answer: A) Purchasing new capital equipment. 17. Selling your stock for more than you paid for it is known as ..... A) Dividends. B) Stock. C) Return. D) Capital gains. Show Answer Correct Answer: D) Capital gains. 18. Functions of Middle Office A) Risk management. B) Financial control. C) Corporate treasury. D) All answer. Show Answer Correct Answer: D) All answer. 19. Banks are not allowed to be involved with hedge funds or private equity firms after Dodd-Frank Act 2010. A) True. B) False. Show Answer Correct Answer: A) True. 20. RBI may collect from the merchant bankers an initial authorisation fee, an annual fee and renewal fee. A) True. B) False. Show Answer Correct Answer: B) False. 21. Is the money in a Roth IRA taxed when it is withdrawn? A) True. B) False. Show Answer Correct Answer: B) False. 22. A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years. A) Emergency Fund. B) CD. C) Mutual Fund. D) T-Note. Show Answer Correct Answer: D) T-Note. 23. What does the M in M-banking stands for? A) Mutual fund. B) Mobile. C) Money. D) Message. Show Answer Correct Answer: B) Mobile. 24. Which investment makes one a lender? A) Investment in Equity share. B) Investment in preference share. C) Investment in debenture. D) Investment in land. Show Answer Correct Answer: C) Investment in debenture. 25. Investing is usually done to meet long-term goals and earns a significant amount of interest. A) True. B) False. Show Answer Correct Answer: B) False. 26. The goal of investing is to earn more in returns than the yearly inflation rate A) False. B) True. Show Answer Correct Answer: B) True. 27. Investment banking is much riskier than traditional banking A) True. B) False. Show Answer Correct Answer: A) True. 28. Role of merchant banking is Innovation. A) False. B) True. Show Answer Correct Answer: B) True. 29. Which activities fall under the front office of investment banking? A) Technology and research. B) Risk management and back office. C) Investment banking and markets. D) Sales and trading and corporate finance. Show Answer Correct Answer: C) Investment banking and markets. 30. Which type of investment typically carries the highest risk? A) Savings Account. B) Stocks. C) Real Estate. D) Bonds. Show Answer Correct Answer: B) Stocks. Next →Related QuizzesInvestments QuizzesFinance QuizzesInvestment Banking Quiz 2Investment Banking Quiz 3Investment Banking Quiz 4Investment Banking Quiz 5Investment Banking Quiz 6Investment Banking Quiz 7Investment Banking Quiz 8Investment Banking Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books