This quiz works best with JavaScript enabled. Home > Investments > Investment Banking > Investment Banking – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Banking Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Diversifying increases the overall risk of loss. A) True. B) False. Show Answer Correct Answer: B) False. 2. What types of transactions are involved in corporate finance? A) All of the above. B) Raising infrastructure finance, seed capital, and restructuring debt. C) Equity issuance, financing joint ventures, and raising capital. D) Mergers and acquisitions, demergers, and takeovers. Show Answer Correct Answer: A) All of the above. 3. Selling your stock when it reaches a certain price is known as a limit order. A) True. B) False. Show Answer Correct Answer: A) True. 4. NBFC is a company registered under ..... A) The RBI Act. B) The Indian Contract Act. C) The Companies Act, 1956. D) Co-operative society Act. Show Answer Correct Answer: A) The RBI Act. 5. A non-voting share that pays a fixed dividend is a ..... A) Growth. B) Blue chip stock. C) Preferred stock. D) Common stock. Show Answer Correct Answer: C) Preferred stock. 6. Reason why firms uses acquisition strategy. A) Decreased speed to market. B) Decreased diversification. C) Managers overly focused on acquisition. D) Reshaping competitive scope. Show Answer Correct Answer: D) Reshaping competitive scope. 7. This individual retirement plan is not tax-defferred A) 401k. B) Roth IRA. C) Traditional IRA. D) Pension. Show Answer Correct Answer: B) Roth IRA. 8. Current ratio is good if: A) 1.5:1. B) 0.9:1. C) 1:1. D) 0.75:1. Show Answer Correct Answer: A) 1.5:1. 9. Economic well being of a person depends on A) How much you save. B) How much you invest. C) How wisely you invest. D) None of these. Show Answer Correct Answer: C) How wisely you invest. 10. What division of an investment bank earns commissions based on market performance? A) Retail banking division. B) Advisory division. C) Sales division. D) Trading division. Show Answer Correct Answer: D) Trading division. 11. In portfolio management which aspect should be maximized? A) Return. B) Risk. C) Return and Risk. D) None of the above. Show Answer Correct Answer: A) Return. 12. One of the restructuring process after mergers and acquisition is called downscoping. What is downscoping A) Reduction of employees. B) Sell firms' assets to others. C) Eliminating unrelated businesses. D) Adding more new products. Show Answer Correct Answer: C) Eliminating unrelated businesses. 13. Which of the following is the function of financial market? A) Mobilization of savings. B) Price fixation. C) Provide liquidity to financial assets. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Investment Bank is a A) Loan provider. B) Not loan provider. C) Deposits taking. D) All answer. Show Answer Correct Answer: B) Not loan provider. 15. Dow Jones and S&P 500 are examples of stock indexes. A) True. B) False. Show Answer Correct Answer: A) True. 16. The main difference between a traditional IRA and a Roth IRA is when the money is taxed. A) True. B) False. Show Answer Correct Answer: A) True. 17. An acquisition can reduce the negative effect of an intense rivalry on a firm's financial performance A) True. B) False. Show Answer Correct Answer: A) True. 18. Investors agree to invest in high-risk investments if only A) There are any true speculations. B) The predicted return is satisfactory for taking a risk. C) There are no safe options except for holding cash. D) The return is short. Show Answer Correct Answer: B) The predicted return is satisfactory for taking a risk. 19. Which of the following is/are the reason(s) for a buyout? A) Protection against a capricious financial market. B) Allows owners to focus on developing innovations and bring them to market. C) Stimulate effective growth. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 20. There are no consequences for withdrawing money from a CD before the maturity date A) True. B) False. Show Answer Correct Answer: B) False. ← 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 9Investment Banking Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books