This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The overall collection of investments held by a person. A) Fund. B) Portfolio. C) Savings Account. D) Certificate of Deposit. Show Answer Correct Answer: B) Portfolio. 2. 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. 3. 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. 4. 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. 5. What is not a true statement about the Capital Market is: A) Long term transaction period, more than 1 year. B) Relatively low interest rates when compared to the Money Market. 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. 6. Which is better A) RD. B) FD. C) NFT. D) None of above. Show Answer Correct Answer: B) FD. 7. 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. 8. 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. 9. 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. 10. A special type of acquisition strategy wherein the target firm does not solicit the acquiring firm's bid. A) Hostile Takeover. B) Acquisition. C) Merger. D) Takeover. Show Answer Correct Answer: D) Takeover. 11. What is the purpose of a Chinese wall in investment banking? A) To prevent conflicts of interest. B) To negotiate fair prices for acquisitions. C) To facilitate information sharing. D) To generate revenue for the bank. Show Answer Correct Answer: A) To prevent conflicts of interest. 12. 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) Financial slack. B) Complementary assets or resources. C) Effective due-diligence process. D) Friendly acquisitions facilitate integration of firms. Show Answer Correct Answer: C) Effective due-diligence process. 13. 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. 14. It is best to start investing as soon as possible. A) True. B) False. Show Answer Correct Answer: A) True. 15. 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. 16. A mutual fund is a pool of money managed by a professional ..... A) Banker. B) Bench plate. C) Accountant. D) Fund manager. Show Answer Correct Answer: D) Fund manager. 17. 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. 18. This is the best way to earn money in the stock market as it has a much larger return. A) IPO. B) Dividends. C) Capital gains. D) Exchange. Show Answer Correct Answer: C) Capital gains. 19. What is the term for the profit made from selling an investment for more than its purchase price? A) Dividend. B) Capital gain. C) Interest. D) Return on Investment. Show Answer Correct Answer: B) Capital gain. 20. What is the purpose of a stress test? A) To determine if the institution could survive a financial crisis. B) To identify potential weaknesses in an institution's financial position. C) To find the relation of assets and liabilities and how well the institution manage risks. D) None of above. Show Answer Correct Answer: A) To determine if the institution could survive a financial crisis. ← 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