This quiz works best with JavaScript enabled. Home > Finance > Investments > Investment Banking > Investment Banking – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Increase firm's power by exploiting cost-based and revenue-based synergies. A) Vertical Acquisition. B) Related Acquisition. C) Horizontal Acquisition. D) None of above. Show Answer Correct Answer: C) Horizontal Acquisition. 2. The amount the stock initially sells for is known as its A) Exchange. B) Capital gains. C) IPO. D) Dividends. Show Answer Correct Answer: C) IPO. 3. Merchant bankers are: ..... A) Merchant. B) Banks. C) Neither merchants nor banks. D) None of above. Show Answer Correct Answer: C) Neither merchants nor banks. 4. Which of the following is a problem to achieve successful acquisition? A) Small organization. B) Very little diversification. C) Acceptable debts. D) Lack of due diligence. Show Answer Correct Answer: D) Lack of due diligence. 5. What are the division of Back Office A) Operations department. B) Information benefits. C) All answer. D) Banking departments. Show Answer Correct Answer: A) Operations department. 6. Stocks of a company fall if performance is good A) True. B) False. C) May or may not. D) None of above. Show Answer Correct Answer: B) False. 7. The following are capital market instruments..... A) SBI, SKBDN, L/C. B) Tabunngan, Tour, Deposit. C) Currency, Bankers Acceptance, T. Bill,. D) Shares, Debt Securities, Mutual Funds, Sukuk, SUN. Show Answer Correct Answer: D) Shares, Debt Securities, Mutual Funds, Sukuk, SUN. 8. How should we understand the statement "The investment bank is bound to the issuer by a best offer agreement" ? A) The investment bank is to actively sell the securities in all possible ways. B) The investment bank will purchase the securities that can not be sold anywhere. Show Answer Correct Answer: A) The investment bank is to actively sell the securities in all possible ways. 9. When the company makes a profit it gives the shareholders a A) Tax. B) Dividend. Show Answer Correct Answer: B) Dividend. 10. The bank's ability to fulfill its debt obligations, be able to pay back all its depositors, and be able to fulfill credit requests submitted by debtors without delays..... A) In the profit table. B) Profitability. C) Liquidity. D) Solvabilitas. Show Answer Correct Answer: C) Liquidity. 11. Why do companies issue stocks? A) To create and investment opportunity into other businesses. B) To increase employee cooperation and an operating level. C) To be traded individually. D) To raise money for economic investment and to fund operating costs. Show Answer Correct Answer: D) To raise money for economic investment and to fund operating costs. 12. Which of the following regulates Credit Rating agencies in India? A) RBI. B) SEBI. C) ICAI. D) NSE. Show Answer Correct Answer: B) SEBI. 13. The early growth of merchant banking in the country is assigned to the A) Foreign exchange regulations act 1973. B) Fema. C) Income tax act. D) None of above. Show Answer Correct Answer: A) Foreign exchange regulations act 1973. 14. An acquiring firm can gain capabilities that the firm does not currently possess such as in term of technology capabilities, expertise and reduced inertia. A) False. B) True. Show Answer Correct Answer: B) True. 15. Money set aside for unanticipated expenses or loss of income A) Mutual Fund. B) T-Note. C) Emergency Fund. D) Index Fund. Show Answer Correct Answer: C) Emergency Fund. 16. Diversifying increases the overall risk of loss. A) True. B) False. Show Answer Correct Answer: B) False. 17. What types of transactions are involved in corporate finance? A) All of the above. B) Raising infrastructure finance, seed capital, and restructuring debt. C) Equity issuance, financing joint ventures, and raising capital. D) Mergers and acquisitions, demergers, and takeovers. Show Answer Correct Answer: A) All of the above. 18. Selling your stock when it reaches a certain price is known as a limit order. A) True. B) False. Show Answer Correct Answer: A) True. 19. NBFC is a company registered under ..... A) The Companies Act, 1956. B) The RBI Act. C) Co-operative society Act. D) The Indian Contract Act. Show Answer Correct Answer: B) The RBI Act. 20. A non-voting share that pays a fixed dividend is a ..... A) Growth. B) Preferred stock. C) Blue chip stock. D) Common stock. Show Answer Correct Answer: B) Preferred stock. 21. Reason why firms uses acquisition strategy. A) Decreased diversification. B) Managers overly focused on acquisition. C) Decreased speed to market. D) Reshaping competitive scope. Show Answer Correct Answer: D) Reshaping competitive scope. 22. This individual retirement plan is not tax-defferred A) 401k. B) Traditional IRA. C) Pension. D) Roth IRA. Show Answer Correct Answer: D) Roth IRA. 23. Current ratio is good if: A) 1:1. B) 1.5:1. C) 0.9:1. D) 0.75:1. Show Answer Correct Answer: B) 1.5:1. 24. Economic well being of a person depends on A) How much you save. B) How much you invest. C) How wisely you invest. D) None of these. Show Answer Correct Answer: C) How wisely you invest. 25. What division of an investment bank earns commissions based on market performance? A) Retail banking division. B) Sales division. C) Advisory division. D) Trading division. Show Answer Correct Answer: D) Trading division. 26. In portfolio management which aspect should be maximized? A) Return. B) Risk. C) Return and Risk. D) None of the above. Show Answer Correct Answer: A) Return. 27. One of the restructuring process after mergers and acquisition is called downscoping. What is downscoping A) Eliminating unrelated businesses. B) Reduction of employees. C) Sell firms' assets to others. D) Adding more new products. Show Answer Correct Answer: A) Eliminating unrelated businesses. 28. Which of the following is the function of financial market? A) Mobilization of savings. B) Price fixation. C) Provide liquidity to financial assets. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. Investment Bank is a A) Loan provider. B) Not loan provider. C) Deposits taking. D) All answer. Show Answer Correct Answer: B) Not loan provider. 30. Dow Jones and S&P 500 are examples of stock indexes. A) False. B) True. Show Answer Correct Answer: B) True. ← PreviousNext →Related QuizzesInvestments QuizzesFinance QuizzesInvestment Banking Quiz 1Investment Banking Quiz 2Investment Banking Quiz 3Investment Banking Quiz 4Investment Banking Quiz 6Investment Banking Quiz 7Investment Banking Quiz 8Investment Banking Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books