This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Name the micro finance company that becomes the first to start operation as a commercial bank A) Paytm Bank. B) Vodafone M Pisa Bank. C) Bandhan Bank. D) Yes Bank. Show Answer Correct Answer: C) Bandhan Bank. 2. Ownership in a publicly traded corporation is represented by? A) CD-Certificate of Deposit. B) Money Market. C) Treasury Bill. D) Stock. Show Answer Correct Answer: D) Stock. 3. A strategy which 1 firm buys a controlling interest in another firm with the intent of making the acquired firm a subsidiary. A) Merger. B) Merger. C) Hostile Takeover. D) Acquisition. Show Answer Correct Answer: D) Acquisition. 4. What are the main activities of the back office in investment banking? A) Sales and trading and research. B) Risk management and technology. C) Investment banking and markets. D) Settlement, clearance, and record-keeping. Show Answer Correct Answer: D) Settlement, clearance, and record-keeping. 5. Earnings of a company shared with its stockholders are known as ..... A) Capital gains. B) Dividends. C) Stock. D) Return. Show Answer Correct Answer: B) Dividends. 6. This company-sponsored retirement plan requires specific job qualifications to be elgible. A) 401k. B) Roth IRA. C) Traditional IRA. D) Pension. Show Answer Correct Answer: D) Pension. 7. Degree of uncertainty on how likely the investor is to make money on an investment A) Index. B) Risk. C) Maturity. D) Penalty. Show Answer Correct Answer: B) Risk. 8. FD is called a Term deposit A) True. B) False. Show Answer Correct Answer: A) True. 9. Robo-advisors are algorithm driven financial planning services A) True. B) False. Show Answer Correct Answer: A) True. 10. Free Cash Flow to Firm is always greater than Free Cash Flow to Equity. A) True. B) False. Show Answer Correct Answer: B) False. 11. What is the traditional service of investment banks that has declined in revenue? A) Proprietary trading. B) Securities underwriting. C) Brokerage trading. D) Asset management. Show Answer Correct Answer: B) Securities underwriting. 12. The act of investing in a large variety of stocks, bonds and/or alternative investments, like gold or real estate, as a way to reduce your overall risk. A) Dividends. B) Mutual Fund Investing. C) Portfolio. D) Diversification. Show Answer Correct Answer: D) Diversification. 13. The time period an investment is intended to last A) Maturity Date. B) Term. C) Interest. D) Diversification. Show Answer Correct Answer: B) Term. 14. IRDA stands for A) Indian Regulatory Development Authority. B) Insurance Regulatory Development Authority. C) Investment in Insurance Regulatory Development Authority. D) None of the above. Show Answer Correct Answer: B) Insurance Regulatory Development Authority. 15. If you wish to purchase US dollars to travel abroad, you will approach:- A) Ministry of finance. B) US Embassy. C) Any bank branch authorized for such activity. D) External Affairs ministry. Show Answer Correct Answer: C) Any bank branch authorized for such activity. 16. Which of the following is not a financial investment? A) Purchase of debenture. B) Purchase of car. C) Purchase of machine. D) Purchase of bond. Show Answer Correct Answer: B) Purchase of car. 17. Internal development of new product often considered high risk and become the solid reason for mergers and acquisition. A) True. B) False. Show Answer Correct Answer: A) True. 18. The more money you invest, the higher the interest rate you earn, and the sooner you invest, the more money you will earn. A) True. B) False. Show Answer Correct Answer: A) True. 19. A bond, often having tax advantages for individual investors, issued by a state or local government, typically uses the loan to pay for public works to benefit its citizens. A) Index Fund. B) Commodity. C) Municipal Bond. D) Emergency Fund. Show Answer Correct Answer: C) Municipal Bond. 20. What is the primary responsibility of an investment bank in an IPO? A) Arranging debt financing for corporations. B) Publishing a prospectus for investors. C) Examining a company's financial statements for accuracy. D) Finding large-scale investors for corporate bonds. Show Answer Correct Answer: B) Publishing a prospectus for investors. ← PreviousNext →Related QuizzesInvestments QuizzesInvestment Banking Quiz 1Investment Banking Quiz 2Investment Banking Quiz 3Investment Banking Quiz 4Investment Banking Quiz 5Investment Banking Quiz 7Investment Banking Quiz 8Investment Banking Quiz 9Investment Banking Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books