Islamic Investment Banking - 1

What is an investment bank?

• A bank that is solely focused only on investing people's or institution's money

• A department within an universal bank that is responsible for investment of liquidity of the bank

• A financial services company or corporate division that engages in advisory-based financial transactions on behalf of others

• All of the above are correct

Which of the following is not a characteristic of an investment bank?

• The customer base of the bank will only be a few hundred

• It is an institution for select individuals, governments and corporations and not all citizens

• Income is from fees and interest

• It is associated with the performance of the financial markets

Which services are offered by a full service investment bank but not offered by the investment banking division of a bank?

• Underwriting

• M & A Advisory

• Equity research

• All of the above are offered by the division

What is underwriting in investment banking?

• It is the evaluation of risk and exposures of potential clients to decide how much coverage the client should receive

• It is the exchange of a fee for the acceptance of risk

• It is the process of helping corporations and institutions find, evaluate, and complete acquisitions of businesses

• It is the process of raising capital through selling stocks or bonds to investors on behalf of corporations

The following are examples of global investment banks, except:

• Goldman Sachs

• JP Morgan and Co

• HSBC

• Citi Bank

What is the difference between an Investment Bank and an Islamic Investment Bank?

• The products and services offered in an Islamic Investment Bank is Shari'ah compliant as per its Shari'ah Board

• Islamic Investment Banks only deal with Islamic projects and transactions, including customers that are Islamic

• Investment Banks does not have anything to do with any Shari'ah compliant services and transactions

• All of the above are correct differences between the two

Which of the following is not a typical job title for an Islamic Investment Bank?

• Analyst

• Associate

• Shari'ah Auditor

• Mechanic