This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is Investment banking A) It is a bank. B) It is a type of banking. C) NFT. D) None of these. Show Answer Correct Answer: B) It is a type of banking. 2. The Economic Growth, Regulatory Relief, and Consumer Protection Act gives exemption of Small Banks from the Volcker Rule. A) True. B) False. Show Answer Correct Answer: A) True. 3. Stock exchange is a A) Primary market. B) Secondary market. C) Money market. D) None of these. Show Answer Correct Answer: B) Secondary market. 4. Restructuring refers to a strategy through which a firm changes its set of businesses or its financial structure. A) True. B) False. Show Answer Correct Answer: A) True. 5. What are the core investment banking activities? A) Front office, middle office, and back office. B) Organizational structure, industry profile, and criticisms. C) Corporate finance, sales and trading, and research. D) Risk management, technology, and research. Show Answer Correct Answer: C) Corporate finance, sales and trading, and research. 6. ..... is the organisations, institutions that provide long term funds. A) Applies market. B) Forex Market. C) Money Market. D) Capital Market. Show Answer Correct Answer: D) Capital Market. 7. It is a financing option whereby risky acquisitions are financed with money (debt) that provides a large potential return to lenders (bondholders) A) Synergy. B) Junk bonds. C) Due diligence. D) Bureaucratic controls. Show Answer Correct Answer: B) Junk bonds. 8. Return refers to the money you can earn from an investment. A) True. B) False. Show Answer Correct Answer: A) True. 9. ..... risks cover the risk of market, interest rate risk and purchasing power risk. A) Unsystematic risk. B) Systematic. C) Financial. D) Business. Show Answer Correct Answer: B) Systematic. 10. What division of an investment bank reviews companies and writes reports about their prospects? A) Research. B) Trading. C) Mergers and Acquisitions. D) Financial Advisors. Show Answer Correct Answer: A) Research. 11. This type of investing is a great start as you can invest with a small balance. A) Robo-advisors. B) Cryptocurrency. C) Micro-investing. D) Fiat system. Show Answer Correct Answer: C) Micro-investing. 12. The market value of a share is responsible for. A) The respective companies. B) Shareholders. C) The government. D) The investment market. Show Answer Correct Answer: D) The investment market. 13. Financial services companies exclude:..... A) Sole proprietor. B) Insurance companies. C) Co-operative Banks. D) Commercial banks. Show Answer Correct Answer: A) Sole proprietor. 14. The rate at which the average price of a product or service increases over some period of time is known as A) Inflation. B) Rate of return. C) Interest. D) Investing. Show Answer Correct Answer: A) Inflation. 15. PSX use for: A) Loan grants. B) Trading of shares. C) Registration of company. D) Retirement benefits of employees. Show Answer Correct Answer: B) Trading of shares. 16. Semiannually means A) Once a year. B) Every other year. C) Twice a year. D) Four times a year. Show Answer Correct Answer: C) Twice a year. 17. Which TERM refers to the numerical value needed to calculate the NPV of an investment? A) Ratio. B) Net cash flow. C) Discounted cash flows. D) Discount factor. Show Answer Correct Answer: D) Discount factor. 18. Which of the following is considered as risk free investment? A) Gold. B) Equity. C) Bonds. D) Treasury bills. Show Answer Correct Answer: D) Treasury bills. 19. Which of the following is NOT a global investment bank? A) Wells Fargo. B) Bank of America. C) Goldman Sachs. D) JPMorgan Chase. Show Answer Correct Answer: A) Wells Fargo. 20. If you receive a 5% return on an investment you made of $ 4, 000, what is the amount you received? A) $ 800. B) $ 200. C) $ 8, 000. D) $ 20, 000. Show Answer Correct Answer: B) $ 200. ← PreviousNext →Related QuizzesInvestments QuizzesInvestment Banking Quiz 1Investment Banking Quiz 2Investment Banking Quiz 3Investment Banking Quiz 4Investment Banking Quiz 6Investment Banking Quiz 7Investment Banking Quiz 8Investment Banking Quiz 9Investment Banking Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books