This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Purchasing power risk is also known as ..... A) Inflation risk. B) Business risk. C) Financial risk. D) Market risk. Show Answer Correct Answer: A) Inflation risk. 2. 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) 23%. B) 15%. C) 20%. D) 25%. Show Answer Correct Answer: C) 20%. 3. ..... is the chance of loss or the variability of returns associated with a given asset. A) Return. B) Value. C) Risk. D) Probability. Show Answer Correct Answer: C) Risk. 4. Some examples of collectibles are coins, stamps, and jewelry. A) Collectibles. B) Returns. C) Bonds. D) Limit orders. Show Answer Correct Answer: A) Collectibles. 5. Stocks in a large, well-established business, like Microsoft, are known as ..... A) Common stock. B) Preferred stock. C) Growth stock. D) Blue chip stock. Show Answer Correct Answer: D) Blue chip stock. 6. This modern day investment is a digital alternative to traditional currency. A) Target date fund. B) Exchange fund transfer. C) Cryptocurrency. D) Fiat system. Show Answer Correct Answer: C) Cryptocurrency. 7. This is a small payout to shareholders each fiscal period. A) IPO. B) Dividends. C) Capital gains. D) Exchange. Show Answer Correct Answer: B) Dividends. 8. 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. 9. The SENSEX has A) 50 stocks. B) 25 stocks. C) 30 stocks. D) 100 stocks. Show Answer Correct Answer: C) 30 stocks. 10. By what organization do you need approval by before you start working as an investment banker? A) PRA. B) CRA. C) IRS. D) IIROC. Show Answer Correct Answer: D) IIROC. 11. Day trading is an example of ..... A) Saving. B) Investing. C) Speculating. D) None of above. Show Answer Correct Answer: C) Speculating. 12. 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. 13. What is an acquisition? A) When a company purchases another company's shares. B) When a company is accused of a crime. C) When a company merges with another company to form a larger firm. D) When gas prices are raised. Show Answer Correct Answer: A) When a company purchases another company's shares. 14. Which investment makes one an owner A) Investment in NSC. B) Investment in bond. C) Investment in debenture. D) Investment in equity. Show Answer Correct Answer: D) Investment in equity. 15. 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. 16. ..... is based on tips, rumours and hunches, unplanned and without knowledge of the exact nature of risk. A) Investment. B) Speculation. C) Gambling. D) Arbitrage. Show Answer Correct Answer: C) Gambling. 17. 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. 18. Find odd one:Authorization criteria of merchant bankers A) Professional competence. B) All business performed. C) Capital adequacy. D) None of above. Show Answer Correct Answer: B) All business performed. 19. A payment made by a publicly traded corporation to its shareholders A) Dividend. B) Index. C) Commodity. D) T-Note. Show Answer Correct Answer: A) Dividend. 20. Putting your money into an MMA is an example of A) Saving. B) Investing. C) Speculating. D) None of above. Show Answer Correct Answer: A) Saving. ← 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