This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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) Cryptocurrency. D) Fiat system. Show Answer Correct Answer: A) Target date fund. 2. 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. 3. Putting money away for retirement is an example of saving. A) True. B) False. Show Answer Correct Answer: A) True. 4. 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) SWAP transactions. B) Option Transactions. C) Spot Transactions. D) Forward Transactions. Show Answer Correct Answer: B) Option Transactions. 5. Why is FD better than RD? A) You end up bankrupt. B) You get higher returns. C) Bank pays you. D) You get NFTs. Show Answer Correct Answer: B) You get higher returns. 6. A certificate issued by a bank to a person depositing money for a specified length of time. A) Mutual Fund. B) Index. C) Bond. D) Certificate of Deposit (CD). Show Answer Correct Answer: D) Certificate of Deposit (CD). 7. Is NASDAQ located in New York? A) True. B) False. Show Answer Correct Answer: A) True. 8. The two American stock exchanges are the NYSE and NASDAQ. A) True. B) False. Show Answer Correct Answer: A) True. 9. 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. 10. Merchant banking in India is governed by A) SEBI. B) IRDA. C) RBI. D) Ministry of Finance. Show Answer Correct Answer: A) SEBI. 11. 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. 12. 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. 13. Risk refers to the chance that an investment will decrease in value. A) True. B) False. Show Answer Correct Answer: A) True. 14. 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. 15. Which is more common, mergers, acquisitions, or takeovers? A) Takeovers. B) Mergers. C) Acquisition. D) None of above. Show Answer Correct Answer: C) Acquisition. 16. 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. 17. 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. 18. What does the time value of money mean? A) The idea that a £ today is worth more than a £ in the future. B) The idea that a £ today is worth less than a £ in the future. C) The value of time in monetary terms. 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. 19. ..... refers to the potential of not earning or even losing money. A) Return. B) Security. C) Risk. D) Diversification. Show Answer Correct Answer: C) Risk. 20. If a bank has to borrow funds from RBI for a long term, which among the following will be applicable? A) Repo Rate. B) Reverse Repo. C) Bank Rate. D) Liquidity Adjustment Facility. Show Answer Correct Answer: C) Bank Rate. ← PreviousNext →Related QuizzesInvestments QuizzesInvestment Banking Quiz 1Investment Banking Quiz 2Investment Banking Quiz 3Investment Banking Quiz 4Investment Banking Quiz 5Investment Banking Quiz 6Investment Banking Quiz 7Investment Banking Quiz 8Investment Banking Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books