This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Diversifying your investments means varying your investments with different levels of risk. A) True. B) False. Show Answer Correct Answer: A) True. 2. How do we call the basic document necessary for conducting an issue on the primary market? A) Prospectus. B) Brochure. C) Offering book. D) None of above. Show Answer Correct Answer: A) Prospectus. 3. The function of brokers in financial markets is very important for other market players because: A) Speed up transactions. B) Deliver the best price. C) Trusted source of information. D) Guarantee the legality of transactions. Show Answer Correct Answer: B) Deliver the best price. 4. It is a process through which a potential acquirer evaluates a target firm for acquisition A) Synergy. B) Junk bonds. C) Due diligence. D) Bureaucratic controls. Show Answer Correct Answer: C) Due diligence. 5. Recurring deposit is also a pyramid scheme A) True. B) False. Show Answer Correct Answer: B) False. 6. In a bear market, investment prices rise, so it is important to buy as soon as possible. A) True. B) False. Show Answer Correct Answer: B) False. 7. A major drawback of cryptocurrency is that it is not insured by the government A) True. B) False. Show Answer Correct Answer: A) True. 8. A market where shares in corporations are bought and sold through an organized system. A) Portfolio. B) Index. C) Stock Market. D) CD. Show Answer Correct Answer: C) Stock Market. 9. An example of a blue-chip stock is Best Buy. A) True. B) False. Show Answer Correct Answer: A) True. 10. Big US investment banks charge lower fee than major European banks. A) True. B) False. Show Answer Correct Answer: B) False. 11. If you invest $ 20, 000 in a friend's company and after one year you receive $ 250 as your share of the profit, what is your ROR? A) 0.0125%. B) 80%. C) 8%. D) 1.25%. Show Answer Correct Answer: D) 1.25%. 12. Financial assets include A) Bank deposits. B) Investment in debentures/bonds. C) Investment in equity shares. D) All of these. Show Answer Correct Answer: D) All of these. 13. Financial Investment is the A) Persons commitment to buy a flat or house. B) Employment of funds in securities to earn returns. C) Employment of funds on assets to earn returns. D) Keeping money in locker. Show Answer Correct Answer: B) Employment of funds in securities to earn returns. 14. For shareholders, ..... generates gains in their wealth that they could not duplicate or exceed through their own portfolio diversification decisions. A) Synergy. B) Junk bonds. C) Due diligence. D) Bureaucratic controls. Show Answer Correct Answer: A) Synergy. 15. Management of the acquired firm ..... A) Takeover the firm. B) Acquire power. C) Reports to management of acquiring firm. D) None of above. Show Answer Correct Answer: C) Reports to management of acquiring firm. 16. What is the main role of an investment bank? A) Acting as a broker for pension funds. B) Providing loans to consumers and businesses. C) Managing complex financial transactions. D) Offering financial advice to high-net-worth individuals. Show Answer Correct Answer: C) Managing complex financial transactions. 17. Current policy rate/ discount of SBP is: A) 10.25. B) 12. C) 9. D) 6. Show Answer Correct Answer: C) 9. 18. This states that money is legal tender but has no tangible value A) Target date fund. B) Exchange fund transfer. C) Cryptocurrency. D) Fiat system. Show Answer Correct Answer: D) Fiat system. 19. The relationship between risk and return can be stated as: A) Higher risk indicates higher return. B) Higher risk indicates lower return. C) Lower risk indicates higher return. D) No relationship exists between risk and return. Show Answer Correct Answer: A) Higher risk indicates higher return. 20. The finance manager is accountable for. A) Proper utilization of funds. B) Effective management of a fund. C) Arrangement of financial resources. D) Earning capital assets of the company. Show Answer Correct Answer: C) Arrangement of financial resources. ← PreviousNext →Related QuizzesInvestments QuizzesInvestment Banking Quiz 1Investment Banking Quiz 2Investment Banking Quiz 3Investment 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