This quiz works best with JavaScript enabled. Home > Finance > Investments > Investment Banking > Investment Banking – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Is NASDAQ located in New York? A) True. B) False. Show Answer Correct Answer: A) True. 2. The two American stock exchanges are the NYSE and NASDAQ. A) False. B) True. Show Answer Correct Answer: B) True. 3. Alco (Asset Liabilities Committee) members in the bank are: A) Treasury, Credit, Accounting and Compliance Division. B) Treasury, Credit, Accounting, Compliance and Audit Division. C) Treasury, Credit, Accounting, Compliance and Legal Divisions. D) All Divisions. Show Answer Correct Answer: D) All Divisions. 4. Merchant banking in India is governed by A) SEBI. B) RBI. C) IRDA. D) Ministry of Finance. Show Answer Correct Answer: A) SEBI. 5. Knowledge is Power A) Financial Express. B) The Economic Times. C) Hindustan Times. D) None of above. Show Answer Correct Answer: B) The Economic Times. 6. This type of retirement account is not tax-deferred. A) 403(b). B) Roth IRA. C) Traditional IRA. D) None of the above. Show Answer Correct Answer: B) Roth IRA. 7. Risk refers to the chance that an investment will decrease in value. A) False. B) True. Show Answer Correct Answer: B) True. 8. Which services are offered by a full service investment bank but not offered by the investment banking division of a bank? A) Underwriting. B) M & A Advisory. C) Equity research. D) All of the above are offered by the division. Show Answer Correct Answer: C) Equity research. 9. Which is more common, mergers, acquisitions, or takeovers? A) Takeovers. B) Mergers. C) Acquisition. D) None of above. Show Answer Correct Answer: C) Acquisition. 10. What is the term for the spread of investments to reduce risk? A) Allocation. B) Diversification. C) Segmentation. D) Integration. Show Answer Correct Answer: B) Diversification. 11. What was the main reason for Gramm-Leach-Bliley Act 1999 to be enacted? A) To prevent Commercial banking, investment banking, and insurance o be more integrated. B) Because Glass-Steagall Act 1933 had existed for too long. C) To repair the issues occured during Global Financial Crisis. D) None of above. Show Answer Correct Answer: A) To prevent Commercial banking, investment banking, and insurance o be more integrated. 12. What does the time value of money mean? A) The idea that a £ today is worth more than a £ in the future. B) The value of time in monetary terms. C) The idea that a £ today is worth less than a £ in the future. D) How much time is takes to earn an investment back. Show Answer Correct Answer: A) The idea that a £ today is worth more than a £ in the future. 13. ..... refers to the potential of not earning or even losing money. A) Diversification. B) Security. C) Return. D) Risk. Show Answer Correct Answer: D) Risk. 14. If a bank has to borrow funds from RBI for a long term, which among the following will be applicable? A) Repo Rate. B) Liquidity Adjustment Facility. C) Bank Rate. D) Reverse Repo. Show Answer Correct Answer: C) Bank Rate. 15. Purchasing power risk is also known as ..... A) Inflation risk. B) Financial risk. C) Market risk. D) Business risk. Show Answer Correct Answer: A) Inflation risk. 16. If the price of a share at the beginning of the year was Rs.70/-, dividend received during the year was Rs.5/-per share and the price at the end is Rs.79/-. What is the rate of return? A) 15%. B) 20%. C) 25%. D) 23%. Show Answer Correct Answer: B) 20%. 17. ..... is the chance of loss or the variability of returns associated with a given asset. A) Return. B) Risk. C) Probability. D) Value. Show Answer Correct Answer: B) Risk. 18. Some examples of collectibles are coins, stamps, and jewelry. A) Bonds. B) Returns. C) Limit orders. D) Collectibles. Show Answer Correct Answer: D) Collectibles. 19. Stocks in a large, well-established business, like Microsoft, are known as ..... A) Preferred stock. B) Common stock. C) Blue chip stock. D) Growth stock. Show Answer Correct Answer: C) Blue chip stock. 20. This modern day investment is a digital alternative to traditional currency. A) Fiat system. B) Cryptocurrency. C) Exchange fund transfer. D) Target date fund. Show Answer Correct Answer: B) Cryptocurrency. 21. This is a small payout to shareholders each fiscal period. A) IPO. B) Dividends. C) Exchange. D) Capital gains. Show Answer Correct Answer: B) Dividends. 22. Which types of banks are involved in investment banking? A) Credit unions, insurance companies, and investment funds. B) Prime brokers, investment funds, and trusts. C) Investment banks, commercial banks, and retail banks. D) Investment banks, pension funds, and trusts. Show Answer Correct Answer: D) Investment banks, pension funds, and trusts. 23. By what organization do you need approval by before you start working as an investment banker? A) IIROC. B) IRS. C) PRA. D) CRA. Show Answer Correct Answer: A) IIROC. 24. Day trading is an example of ..... A) Saving. B) Investing. C) Speculating. D) None of above. Show Answer Correct Answer: C) Speculating. 25. What is an investment bank? A) A bank that is solely focused only on investing people's or institution's money. B) A department within an universal bank that is responsible for investment of liquidity of the bank. C) A financial services company or corporate division that engages in advisory-based financial transactions on behalf of others. D) All of the above are correct. Show Answer Correct Answer: C) A financial services company or corporate division that engages in advisory-based financial transactions on behalf of others. 26. What is an acquisition? A) When a company is accused of a crime. B) When a company purchases another company's shares. C) When gas prices are raised. D) When a company merges with another company to form a larger firm. Show Answer Correct Answer: B) When a company purchases another company's shares. 27. Which investment makes one an owner A) Investment in debenture. B) Investment in equity. C) Investment in bond. D) Investment in NSC. Show Answer Correct Answer: B) Investment in equity. 28. SECP Functions include: A) Trading of share. B) Financing. C) Regulator for companies. D) None of above. Show Answer Correct Answer: C) Regulator for companies. 29. ..... is based on tips, rumours and hunches, unplanned and without knowledge of the exact nature of risk. A) Speculation. B) Arbitrage. C) Investment. D) Gambling. Show Answer Correct Answer: D) Gambling. 30. Which of the following is not the reason for acquisition? A) Increase market power. B) Overcoming entry barriers. C) Increase diversification. D) Building up brand image. Show Answer Correct Answer: D) Building up brand image. ← PreviousNext →Related QuizzesInvestments QuizzesFinance QuizzesInvestment Banking Quiz 1Investment Banking Quiz 2Investment Banking Quiz 3Investment Banking Quiz 4Investment Banking Quiz 5Investment Banking Quiz 6Investment Banking Quiz 8Investment Banking Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books