This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the primary reason for a company to issue stock? A) The stocks help investors earn a higher rate of return. B) To raise money to grow the company. C) To distribute the risk of bankruptcy across more investors. D) To increase greater awareness of the company. Show Answer Correct Answer: B) To raise money to grow the company. 2. The quantitative techniques used to calculate the financial costs and benefits in investments? A) Investment Appraisal. B) Cash Flow Forecast. C) Profit. D) Investment. Show Answer Correct Answer: A) Investment Appraisal. 3. A collection of stocks and/or bonds combined into one fund, which will be traded as a unit, typically chosen and actively managed by an expert in exchange for a fee from each investor. A) Stock. B) Bond. C) T-Note. D) Mutual Fund. Show Answer Correct Answer: D) Mutual Fund. 4. Mutual funds are a great option for people who need diversification and don't know much about investing. A) True. B) False. Show Answer Correct Answer: A) True. 5. B) plans are offered to public employees and are tax-deferred. A) True. B) False. Show Answer Correct Answer: A) True. 6. A share of the value of a company, which can be bought, sold or traded as an investment and which gives the investor partial ownership of the company A) CD. B) Mutual Fund. C) T-Note. D) Stock. Show Answer Correct Answer: D) Stock. 7. What is stock market? A) Non-Fungible token. B) Trading of shares of privately listed companies. C) Trading of shares of public listed companies. D) None of these. Show Answer Correct Answer: C) Trading of shares of public listed companies. 8. An English language teacher and an investment banker both: A) Assign homework. B) Love English grammar. C) Help people. D) Earn a lot of money. Show Answer Correct Answer: C) Help people. 9. A raw material or primary agricultural product that can be bought and sold, such as copper or coffee A) CD. B) Dividend. C) Commodity. D) Bond. Show Answer Correct Answer: C) Commodity. 10. It is possible to lose all of your invested money. A) True. B) False. Show Answer Correct Answer: A) True. 11. Mutual funds are independent on the market A) True. B) False. Show Answer Correct Answer: B) False. 12. 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. 13. It is formalized supervisory and behavioral rules and policies designed to ensure consistency of decisions and actions across a firm's units. A) Synergy. B) Junk bonds. C) Due diligence. D) Bureaucratic controls. Show Answer Correct Answer: D) Bureaucratic controls. 14. A fee you'll be charged for withdrawing money before a CD's maturity date A) Index. B) Interest. C) Risk. D) Penalty. Show Answer Correct Answer: D) Penalty. 15. Stock exchange is known as ..... market for securities. A) Primary market. B) Secondary market. C) Money market. D) Forex market. Show Answer Correct Answer: B) Secondary market. 16. 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. 17. 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. 18. 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. 19. When mergers and acquisition occurred, restructuring process will also take place. A) True. B) False. Show Answer Correct Answer: A) True. 20. Most investors are risk averse which means: A) They will assume more risk only if they are compensated by higher expected return. B) They will always invest in the investment with the lowest possible risk. C) They actively seek to maximize their return. D) They avoid the stock market due to the high degree of risk. Show Answer Correct Answer: B) They will always invest in the investment with the lowest possible risk. ← 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