This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Employment of funds with the aim of achieving additional income is known as ..... A) Speculation. B) Gambling. C) Biting. D) Investment. Show Answer Correct Answer: D) Investment. 2. What is the main difference between investment banks and commercial banks? A) Investment banks are regulated by the SEC and FINRA, while commercial banks are regulated by the Glass-Steagall Act. B) Investment banks offer a wide range of services, while commercial banks are limited to underwriting securities. C) Investment banks take deposits, while commercial banks provide advisory-based financial transactions. D) Investment banks focus on underwriting security issuance, while commercial banks focus on retail banking. Show Answer Correct Answer: D) Investment banks focus on underwriting security issuance, while commercial banks focus on retail banking. 3. What is underwriting in investment banking? A) It is the evaluation of risk and exposures of potential clients to decide how much coverage the client should receive. B) It is the exchange of a fee for the acceptance of risk. C) It is the process of helping corporations and institutions find, evaluate, and complete acquisitions of businesses. D) It is the process of raising capital through selling stocks or bonds to investors on behalf of corporations. Show Answer Correct Answer: D) It is the process of raising capital through selling stocks or bonds to investors on behalf of corporations. 4. It is important to ..... to reduce your overall risk of loss. A) Diversify. B) Invest. C) Save. D) Spend. Show Answer Correct Answer: A) Diversify. 5. A fixed-income security is defined as: A) A debt obligation that pays a fixed rate of return for a one-year period. B) Common or preferred stock that pays a fixed annual dividend. C) A long-term debt obligation that pays scheduled fixed payments. D) Long-term debt issued solely by a federal or state government. Show Answer Correct Answer: C) A long-term debt obligation that pays scheduled fixed payments. 6. The oldest stock exchange in India is A) Delhi Stock Exchange. B) National Stock Exchange. C) Bombay Stock Exchange. D) Madras Stock Exchange. Show Answer Correct Answer: C) Bombay Stock Exchange. 7. The regulatory body for the securities market in India is ..... A) RBI. B) SEBI. C) IRDA. D) NABARD. Show Answer Correct Answer: B) SEBI. 8. Tax defferred means that taxes are taken out upon deposit, not withdrawal. A) True. B) False. Show Answer Correct Answer: B) False. 9. Factors associated with a market or with the firms currently operating in it that increase the expense and difficulty new firms encounter when trying to enter that particular market. A) Cross-Border Acquisition. B) Diversification. C) Barriers to Entry. D) None of above. Show Answer Correct Answer: C) Barriers to Entry. 10. FATCA Stands for A) Foreign Account Tax Compliance Act. B) Foreign Account Trade Company Act. C) Financial Account Tax Compliance Act. D) Fiscal Account Tax Compliance Act. Show Answer Correct Answer: A) Foreign Account Tax Compliance Act. 11. Investors with risk-loving characteristics will purchase securities with higher expected returns, lesser risks, and more liquidity. Do you agree with this statement? A) True. B) False. Show Answer Correct Answer: A) True. 12. Financialintermediaries can substantially reduce transaction costs per dollar oftransactions because their large size allows them to take advantage of A) Poorly informed consumers. B) Standardization. C) Economies of scale. D) Their market power. Show Answer Correct Answer: C) Economies of scale. 13. The main purpose of acquisition is to create synergy. A) True. B) False. Show Answer Correct Answer: A) True. 14. If you invest $ 500 in a business and at the end of the year your ROR was 2%, how much did you receive? A) $ 1, 000. B) $ 25, 000. C) $ 510. D) $ 10. Show Answer Correct Answer: D) $ 10. 15. The lead merchant bankers under category shall accept a minimum underwriting of ..... A) 20%. B) 0.25%. C) 100%. D) 5%. Show Answer Correct Answer: D) 5%. 16. This individual retirement plan is tax-defferred A) 401k. B) Roth IRA. C) Traditional IRA. D) Pension. Show Answer Correct Answer: C) Traditional IRA. 17. Stock exchange is A) Primary market. B) Forex market. C) Spot market. D) Secondary market. Show Answer Correct Answer: D) Secondary market. 18. Leverage Buyout results in higher performance but in higher risk on long-term outcomes. A) True. B) False. Show Answer Correct Answer: A) True. 19. Which company is the sole public sector life insurance company A) Standard life insurance. B) Bharti Axa life insurance. C) Life Insurance Corporation of India. D) None of above. Show Answer Correct Answer: C) Life Insurance Corporation of India. 20. This type of modern day investment operates much like a mutual fund except prices rise and fall all day A) Target date fund. B) Exchange fund transfer. C) Cryptocurrency. D) Fiat system. Show Answer Correct Answer: B) Exchange fund transfer. ← 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