Investment Banking Quiz 10 (16 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. What is the term for the profit made from selling an investment for more than its purchase price?

Correct Answer: D) Capital gain.

2. What is the purpose of a stress test?

Correct Answer: A) To determine if the institution could survive a financial crisis.

3. Horse racing, game of cards, lottery are the typical examples of .....

Correct Answer: C) Gambling.

4. Investing in multiple blue chip, growth, and penny stocks are examples of

Correct Answer: B) Investing.

5. Who controls money market?

Correct Answer: C) RBI.

6. Voting shares that are not paid a fixed dividend are known as .....

Correct Answer: A) Common stock.

7. Functional of financial services exclude: .....

Correct Answer: B) Collection Tax.

8. When two firms agree to integrate their operations called .....

Correct Answer: A) Merger.

9. As a stockholder, you own a part of a company.

Correct Answer: A) True.

10. Banks are required to maintain adequate liquidity. Fulfillment of sufficient liquidity is calculated using:

Correct Answer: A) LCR.(Liquidity Coverage Ratio).

11. What is it called when a lender and borrower deal directly with each other, without the help of a financial institution?

Correct Answer: C) Private Placement.

12. What is the difference between an Investment Bank and an Islamic Investment Bank?

Correct Answer: A) The products and services offered in an Islamic Investment Bank is Shari'ah compliant as per its Shari'ah Board.

13. Which of the following is outside the purview of investment class

Correct Answer: D) Current account deposits.

14. Which division of an investment bank provides strategic advice to institutional investors?

Correct Answer: A) Financial Advisors.

15. Which of these phrases is used for strong disagreement?

Correct Answer: C) I don't see it this way.

16. This type of retirement account is only offered to public employees.

Correct Answer: C) 403(b).