This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Banks are not allowed to be involved with hedge funds or private equity firms after Dodd-Frank Act 2010. A) True. B) False. Show Answer Correct Answer: A) True. 2. RBI may collect from the merchant bankers an initial authorisation fee, an annual fee and renewal fee. A) True. B) False. Show Answer Correct Answer: B) False. 3. Is the money in a Roth IRA taxed when it is withdrawn? A) True. B) False. Show Answer Correct Answer: B) False. 4. A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years. A) T-Note. B) Mutual Fund. C) Emergency Fund. D) CD. Show Answer Correct Answer: A) T-Note. 5. Saving is for A) For emergency. B) Materializing the dream. C) Funding happy retirement. D) For all. Show Answer Correct Answer: D) For all. 6. What does the M in M-banking stands for? A) Money. B) Message. C) Mobile. D) Mutual fund. Show Answer Correct Answer: C) Mobile. 7. Which investment makes one a lender? A) Investment in Equity share. B) Investment in preference share. C) Investment in debenture. D) Investment in land. Show Answer Correct Answer: C) Investment in debenture. 8. Investing is usually done to meet long-term goals and earns a significant amount of interest. A) True. B) False. Show Answer Correct Answer: B) False. 9. The goal of investing is to earn more in returns than the yearly inflation rate A) True. B) False. Show Answer Correct Answer: A) True. 10. Investment banking is much riskier than traditional banking A) True. B) False. Show Answer Correct Answer: A) True. 11. Role of merchant banking is Innovation. A) False. B) True. Show Answer Correct Answer: B) True. 12. Which activities fall under the front office of investment banking? A) Technology and research. B) Risk management and back office. C) Investment banking and markets. D) Sales and trading and corporate finance. Show Answer Correct Answer: C) Investment banking and markets. 13. Which type of investment typically carries the highest risk? A) Bonds. B) Real Estate. C) Stocks. D) Savings Account. Show Answer Correct Answer: C) Stocks. 14. NPV will be positive if A) Companies work hard. B) Discounted cash flows justify initial investment. C) Money is given back. D) They won't be. Show Answer Correct Answer: B) Discounted cash flows justify initial investment. 15. Variance calculation and measuring the Standard deviation is one way of measuring the ..... A) Return. B) Speculation. C) Gambling. D) Risk. Show Answer Correct Answer: D) Risk. 16. Which of the following is not a characteristic of an investment bank? A) The customer base of the bank will only be a few hundred. B) It is an institution for select individuals, governments and corporations and not all citizens. C) Income is from fees and interest. D) It is associated with the performance of the financial markets. Show Answer Correct Answer: C) Income is from fees and interest. 17. A sudden and extreme downturn in stock performance/value A) Index. B) Crash. C) Penalty. D) Risk. Show Answer Correct Answer: B) Crash. 18. Which type of prospectus has the information of share price and number of shares? A) Preliminary prospectus. B) Final prospectus. Show Answer Correct Answer: B) Final prospectus. 19. Merchant banks shall not associate with any business other than that of the securities market. A) True. B) False. Show Answer Correct Answer: A) True. 20. The Average (or Accounting) Rate of Return Method of Investment Appraisal will always select ..... A) The project with the lowest cost. B) The project with the highest total net return. C) The project with the highest average rate of return. D) None of above. Show Answer Correct Answer: C) The project with the highest average rate of return. ← PreviousNext →Related QuizzesInvestments QuizzesInvestment Banking Quiz 1Investment Banking Quiz 3Investment Banking Quiz 4Investment Banking Quiz 5Investment Banking Quiz 6Investment Banking Quiz 7Investment Banking Quiz 8Investment Banking Quiz 9Investment Banking Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books