This quiz works best with JavaScript enabled. Home > Finance > Investments > Investment Banking > Investment Banking – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An English language teacher and an investment banker both: A) Love English grammar. B) Help people. C) Earn a lot of money. D) Assign homework. Show Answer Correct Answer: B) Help people. 2. A raw material or primary agricultural product that can be bought and sold, such as copper or coffee A) CD. B) Commodity. C) Dividend. D) Bond. Show Answer Correct Answer: B) Commodity. 3. It is possible to lose all of your invested money. A) True. B) False. Show Answer Correct Answer: A) True. 4. Mutual funds are independent on the market A) True. B) False. Show Answer Correct Answer: B) False. 5. Formal merchant banking activity in india was orginated in A) 1969. B) 1963. C) 1974. D) None of above. Show Answer Correct Answer: A) 1969. 6. It is formalized supervisory and behavioral rules and policies designed to ensure consistency of decisions and actions across a firm's units. A) Bureaucratic controls. B) Synergy. C) Junk bonds. D) Due diligence. Show Answer Correct Answer: A) Bureaucratic controls. 7. A fee you'll be charged for withdrawing money before a CD's maturity date A) Risk. B) Penalty. C) Index. D) Interest. Show Answer Correct Answer: B) Penalty. 8. Stock exchange is known as ..... market for securities. A) Forex market. B) Money market. C) Secondary market. D) Primary market. Show Answer Correct Answer: C) Secondary market. 9. In which Act it was required commercial banking to be separated from investment banking? A) Glass-Steagall Act. B) Gramm-Leach-Bliley Act. C) Dodd-Frank Act. D) None of above. Show Answer Correct Answer: A) Glass-Steagall Act. 10. Which of the following are the three types of leverage buyouts, except? A) Employee Buyouts. B) Management Buyouts. C) Whole-firm buyouts. D) All of the Above. E) None of the Above. Show Answer Correct Answer: E) None of the Above. 11. Bhadti's name is life A) Axis bank. B) Bank of baroda. C) Bandhan Bank. D) Bank of baroda. Show Answer Correct Answer: A) Axis bank. 12. When mergers and acquisition occurred, restructuring process will also take place. A) True. B) False. Show Answer Correct Answer: A) True. 13. Most investors are risk averse which means: A) They will assume more risk only if they are compensated by higher expected return. B) They actively seek to maximize their return. C) They avoid the stock market due to the high degree of risk. D) They will always invest in the investment with the lowest possible risk. Show Answer Correct Answer: D) They will always invest in the investment with the lowest possible risk. 14. The overall collection of investments held by a person. A) Certificate of Deposit. B) Fund. C) Portfolio. D) Savings Account. Show Answer Correct Answer: C) Portfolio. 15. Provider of a very standardized service. This refer to? A) Investment bank. B) Commercial bank. C) Islamic bank. D) All answer. Show Answer Correct Answer: B) Commercial bank. 16. Inflation risk arises due to: A) Bank deposit. B) Share trading. C) Inflation due to supply and demand. D) Stock exchange. Show Answer Correct Answer: C) Inflation due to supply and demand. 17. What is a potential conflict of interest in investment banking? A) Estimating the value of potential acquisitions. B) Sharing information between divisions. C) Providing strategic advice to clients. D) Facilitating mergers and acquisitions. Show Answer Correct Answer: B) Sharing information between divisions. 18. What is not a true statement about the Capital Market is: A) Relatively low interest rates when compared to the Money Market. B) Long term transaction period, more than 1 year. C) Compared to the Money Market, Capital Market risk is relatively low. D) The capital market is supervised by BAPEPAM. Show Answer Correct Answer: D) The capital market is supervised by BAPEPAM. 19. What are the full forms of RD and FD A) Recurring deposit, fixed deposit. B) Ruler deposit, funding deposit. C) Recurring deposit, fraction deposits. D) None of these. Show Answer Correct Answer: A) Recurring deposit, fixed deposit. 20. Which of the following is the activity which finance people are involved? A) Marketing decision. B) Promotional decision. C) Investing decision. D) None of these. Show Answer Correct Answer: C) Investing decision. 21. What's NOT a correct collocation? A) Diversify funds. B) Allocate funds. C) Follow funds. D) Hedge funds. Show Answer Correct Answer: C) Follow funds. 22. A special type of acquisition strategy wherein the target firm does not solicit the acquiring firm's bid. A) Takeover. B) Acquisition. C) Merger. D) Hostile Takeover. Show Answer Correct Answer: A) Takeover. 23. What is the purpose of a Chinese wall in investment banking? A) To prevent conflicts of interest. B) To facilitate information sharing. C) To generate revenue for the bank. D) To negotiate fair prices for acquisitions. Show Answer Correct Answer: A) To prevent conflicts of interest. 24. It involve the deliberate and careful selection of target firms and an evaluation of the relative health of those firms contribute to successful acquisitions. A) Friendly acquisitions facilitate integration of firms. B) Complementary assets or resources. C) Financial slack. D) Effective due-diligence process. Show Answer Correct Answer: D) Effective due-diligence process. 25. Which investment bank had the biggest global market share of revenue as of December 2021? A) JP Morgan. B) Goldman Sachs. C) Morgan Stanley. D) None of above. Show Answer Correct Answer: A) JP Morgan. 26. It is best to start investing as soon as possible. A) False. B) True. Show Answer Correct Answer: B) True. 27. The purpose of financial markets is to? A) Lower the yield on bonds. B) Allocate savings efficiently. C) Control inflation. D) Increase the price of common stocks. Show Answer Correct Answer: B) Allocate savings efficiently. 28. A mutual fund is a pool of money managed by a professional ..... A) Accountant. B) Bench plate. C) Banker. D) Fund manager. Show Answer Correct Answer: D) Fund manager. 29. What is the role of investment bankers in issuing new security offerings? A) Assisting in raising financial capital. B) Offering ancillary services such as research and trading. C) Facilitating transactions and market-making. D) Providing advice on mergers and acquisitions. Show Answer Correct Answer: A) Assisting in raising financial capital. 30. This is the best way to earn money in the stock market as it has a much larger return. A) IPO. B) Exchange. C) Dividends. D) Capital gains. Show Answer Correct Answer: D) Capital gains. ← 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 7Investment Banking Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books