This quiz works best with JavaScript enabled. Home > Finance > Investments > Investment Banking > Investment Banking – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The main difference between a traditional IRA and a Roth IRA is when the money is taxed. A) False. B) True. Show Answer Correct Answer: B) True. 2. An acquisition can reduce the negative effect of an intense rivalry on a firm's financial performance A) True. B) False. Show Answer Correct Answer: A) True. 3. Investors agree to invest in high-risk investments if only A) There are no safe options except for holding cash. B) The return is short. C) There are any true speculations. D) The predicted return is satisfactory for taking a risk. Show Answer Correct Answer: D) The predicted return is satisfactory for taking a risk. 4. Which of the following is/are the reason(s) for a buyout? A) Protection against a capricious financial market. B) Allows owners to focus on developing innovations and bring them to market. C) Stimulate effective growth. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 5. There are no consequences for withdrawing money from a CD before the maturity date A) False. B) True. Show Answer Correct Answer: A) False. 6. What is the primary function of an investment bank's research division? A) To assist traders and sales department. B) To maintain institutional knowledge on various research areas. C) To generate revenue for the bank. D) To provide investment advice to outside clients. Show Answer Correct Answer: B) To maintain institutional knowledge on various research areas. 7. A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index A) Index Fund. B) T-Note. C) Commodity. D) CD. Show Answer Correct Answer: A) Index Fund. 8. True or False:Investment banking is a competitive field that requires a solid education background and long hours A) True. B) False. Show Answer Correct Answer: A) True. 9. You are serving as a lender to either the government or a corporation with this type of investment. A) Roth IRA. B) Mutual fund. C) Traditional IRA. D) Bond. Show Answer Correct Answer: D) Bond. 10. What was the Norbourg scandal about? A) The CEO kept billions of dollars of debt off the company's balance sheet. B) The company had had inflated its revenues by making false entries. C) The company had intentionally overstated earnings in the company's books. D) The company owner diverted the company funds into funds for personal use. Show Answer Correct Answer: D) The company owner diverted the company funds into funds for personal use. 11. As per which act, holidays are provided in the banks? A) RBI Act. B) As per orders of Govt. C) Banking Nationalisation Act. D) Banking Regulation Act. Show Answer Correct Answer: D) Banking Regulation Act. 12. The Economic Growth, Regulatory Relief, and Consumer Protection Act increases Regulatory Burdens bank holding companies having from $ 200 to $ 250 billion in assets. A) True. B) False. Show Answer Correct Answer: B) False. 13. Stocks in a corporation that are expected to experience rapid growth are known as ..... A) Blue chip stocks. B) Preferred stock. C) Common stock. D) Growth stock. Show Answer Correct Answer: D) Growth stock. 14. ..... refers to the strategy of investing in a variety of businesses with different levels of risk. A) Risk. B) Return. C) Security. D) Diversification. Show Answer Correct Answer: D) Diversification. 15. Which bank was closed by the New York State commissioner of bank during the Great Depression (in 1930)? A) The Bank of United States. B) The Bank of America. Show Answer Correct Answer: A) The Bank of United States. 16. Which would be considered the highest risk investment type? A) Bond. B) Stock. C) Money Market Account. D) Mutual Fund. Show Answer Correct Answer: B) Stock. 17. The following are examples of global investment banks, except: A) Goldman Sachs. B) JP Morgan and Co. C) HSBC. D) Citi Bank. Show Answer Correct Answer: D) Citi Bank. 18. ..... operates in inter bank call money market. A) Central Bank (RBI). B) Financer house of India. C) Commercial Banks. D) Co-operative Banks. Show Answer Correct Answer: B) Financer house of India. 19. True or False:A professional accounting designation required to be an investment banker A) False. B) True. Show Answer Correct Answer: A) False. 20. After the Global Financial Crisis Financial, institutions are required to lower the amount of money they hold in reserve to facilitate the economy. A) False. B) True. Show Answer Correct Answer: A) False. 21. The liberalization of Indian Banking and Regulation was done based on recommendation of ..... ? A) R Gandhi Committee. B) Narasimham Committee. C) Basel committee. D) Khusro Committee. Show Answer Correct Answer: B) Narasimham Committee. 22. Value of a mutual fund increases with fall in market A) Yes. B) No. Show Answer Correct Answer: B) No. 23. This is a professionally managed, diverse portfolio of investments. A) Roth IRA. B) Bond. C) Traditional IRA. D) Mutual fund. Show Answer Correct Answer: D) Mutual fund. 24. Cash Conversion Cycle formula: A) You-ar. B) AP + Inventory + AR. C) Inventory-AP-AR. D) AR + Inventory-AP. Show Answer Correct Answer: D) AR + Inventory-AP. 25. This type of modern day investment is a mutual fund designed to grow investments for a specific time frame. A) Target date fund. B) Exchange fund transfer. C) Fiat system. D) Cryptocurrency. Show Answer Correct Answer: A) Target date fund. 26. The Volcker Rule, restricts the ways banks can invest, limiting speculative trading, and eliminating proprietary trading. Where can we find Volcker Rule? A) Dodd-Frank Act 2010. B) Glass-Steagall Act 1933. C) Gramm-Leach-Bliley Act. D) None of above. Show Answer Correct Answer: A) Dodd-Frank Act 2010. 27. Putting money away for retirement is an example of saving. A) False. B) True. Show Answer Correct Answer: B) True. 28. In treasury products, where the sale (bank) and purchase (customer) transactions are in the form of the right to buy or the right to sell with a period according to the agreement, namely: A) Spot Transactions. B) SWAP transactions. C) Option Transactions. D) Forward Transactions. Show Answer Correct Answer: C) Option Transactions. 29. Why is FD better than RD? A) You get NFTs. B) You end up bankrupt. C) You get higher returns. D) Bank pays you. Show Answer Correct Answer: C) You get higher returns. 30. A certificate issued by a bank to a person depositing money for a specified length of time. A) Index. B) Certificate of Deposit (CD). C) Mutual Fund. D) Bond. Show Answer Correct Answer: B) Certificate of Deposit (CD). ← PreviousNext →Related QuizzesInvestments QuizzesFinance QuizzesInvestment Banking Quiz 1Investment Banking Quiz 2Investment Banking Quiz 3Investment Banking Quiz 4Investment Banking Quiz 5Investment Banking Quiz 7Investment Banking Quiz 8Investment Banking Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books