This quiz works best with JavaScript enabled. Home > Finance > Investments > Investment Banking > Investment Banking – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The rate at which the average price of a product or service increases over some period of time is known as A) Inflation. B) Investing. C) Interest. D) Rate of return. Show Answer Correct Answer: A) Inflation. 2. Semiannually means A) Once a year. B) Four times a year. C) Twice a year. D) Every other year. Show Answer Correct Answer: C) Twice a year. 3. Which TERM refers to the numerical value needed to calculate the NPV of an investment? A) Net cash flow. B) Ratio. C) Discounted cash flows. D) Discount factor. Show Answer Correct Answer: D) Discount factor. 4. Which of the following is considered as risk free investment? A) Treasury bills. B) Gold. C) Equity. D) Bonds. Show Answer Correct Answer: A) Treasury bills. 5. Which of the following is NOT a global investment bank? A) Bank of America. B) Wells Fargo. C) JPMorgan Chase. D) Goldman Sachs. Show Answer Correct Answer: B) Wells Fargo. 6. If you receive a 5% return on an investment you made of $ 4, 000, what is the amount you received? A) $ 200. B) $ 800. C) $ 20, 000. D) $ 8, 000. Show Answer Correct Answer: A) $ 200. 7. Name the micro finance company that becomes the first to start operation as a commercial bank A) Paytm Bank. B) Vodafone M Pisa Bank. C) Bandhan Bank. D) Yes Bank. Show Answer Correct Answer: C) Bandhan Bank. 8. Ownership in a publicly traded corporation is represented by? A) Treasury Bill. B) Stock. C) CD-Certificate of Deposit. D) Money Market. Show Answer Correct Answer: B) Stock. 9. A strategy which 1 firm buys a controlling interest in another firm with the intent of making the acquired firm a subsidiary. A) Acquisition. B) Merger. C) Merger. D) Hostile Takeover. Show Answer Correct Answer: A) Acquisition. 10. What are the main activities of the back office in investment banking? A) Sales and trading and research. B) Risk management and technology. C) Investment banking and markets. D) Settlement, clearance, and record-keeping. Show Answer Correct Answer: D) Settlement, clearance, and record-keeping. 11. Earnings of a company shared with its stockholders are known as ..... A) Dividends. B) Capital gains. C) Stock. D) Return. Show Answer Correct Answer: A) Dividends. 12. This company-sponsored retirement plan requires specific job qualifications to be elgible. A) 401k. B) Traditional IRA. C) Roth IRA. D) Pension. Show Answer Correct Answer: D) Pension. 13. Degree of uncertainty on how likely the investor is to make money on an investment A) Index. B) Maturity. C) Risk. D) Penalty. Show Answer Correct Answer: C) Risk. 14. FD is called a Term deposit A) False. B) True. Show Answer Correct Answer: B) True. 15. Robo-advisors are algorithm driven financial planning services A) True. B) False. Show Answer Correct Answer: A) True. 16. Free Cash Flow to Firm is always greater than Free Cash Flow to Equity. A) False. B) True. Show Answer Correct Answer: A) False. 17. What is the traditional service of investment banks that has declined in revenue? A) Securities underwriting. B) Asset management. C) Proprietary trading. D) Brokerage trading. Show Answer Correct Answer: A) Securities underwriting. 18. The act of investing in a large variety of stocks, bonds and/or alternative investments, like gold or real estate, as a way to reduce your overall risk. A) Mutual Fund Investing. B) Portfolio. C) Dividends. D) Diversification. Show Answer Correct Answer: D) Diversification. 19. The time period an investment is intended to last A) Term. B) Interest. C) Diversification. D) Maturity Date. Show Answer Correct Answer: A) Term. 20. If you wish to purchase US dollars to travel abroad, you will approach:- A) External Affairs ministry. B) Ministry of finance. C) Any bank branch authorized for such activity. D) US Embassy. Show Answer Correct Answer: C) Any bank branch authorized for such activity. 21. Which of the following is not a financial investment? A) Purchase of car. B) Purchase of bond. C) Purchase of machine. D) Purchase of debenture. Show Answer Correct Answer: A) Purchase of car. 22. Internal development of new product often considered high risk and become the solid reason for mergers and acquisition. A) True. B) False. Show Answer Correct Answer: A) True. 23. The more money you invest, the higher the interest rate you earn, and the sooner you invest, the more money you will earn. A) True. B) False. Show Answer Correct Answer: A) True. 24. A bond, often having tax advantages for individual investors, issued by a state or local government, typically uses the loan to pay for public works to benefit its citizens. A) Commodity. B) Emergency Fund. C) Index Fund. D) Municipal Bond. Show Answer Correct Answer: D) Municipal Bond. 25. What is the primary responsibility of an investment bank in an IPO? A) Examining a company's financial statements for accuracy. B) Publishing a prospectus for investors. C) Arranging debt financing for corporations. D) Finding large-scale investors for corporate bonds. Show Answer Correct Answer: B) Publishing a prospectus for investors. 26. Lets make money simple A) Bank of baroda. B) Citi bank. C) Kotak Mahindra. D) Yes bank. Show Answer Correct Answer: C) Kotak Mahindra. 27. Which company is an example of direct listing? A) Facebook. B) Spotify. Show Answer Correct Answer: B) Spotify. 28. Which President signed the Economic Growth, Regulatory Relief, and Consumer Protection Act? A) Obama. B) Trump. C) Clinton. D) None of above. Show Answer Correct Answer: B) Trump. 29. What is not included in money market instruments is: A) Call money. B) World currency. C) Bankers Acceptance. D) Shares. Show Answer Correct Answer: D) Shares. 30. To calculate the rate of return, divide your share of the profit by the amount you invested. A) False. B) True. Show Answer Correct Answer: A) False. ← PreviousNext →Related QuizzesInvestments QuizzesFinance QuizzesInvestment Banking Quiz 1Investment Banking Quiz 2Investment Banking Quiz 3Investment Banking Quiz 5Investment Banking Quiz 6Investment Banking Quiz 7Investment Banking Quiz 8Investment Banking Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books