Setts Connect - May 2023

What is compound interest?

• Interest calculated only on the principal amount

• Interest calculated on both the principal amount and the accumulated interes

• Interest calculated at a fixed rate

• Interest calculated on a decreasing balance

What is a mutual fund?

• A type of insurance policy

• A type of retirement account

• An investment vehicle that pools money from multiple investors to invest in various securities

• A type of loan provided by a bank

What is a credit score?

• A measure of a person's ability to save money

• A measure of a person's spending habits

• A measure of a person's borrowing history and creditworthiness

• A measure of a person's investment performance

 During a recession, what is typically the impact on investment banking activities?

• Increase in mergers and acquisitions (M&A) deals

• Decrease in initial public offerings (IPOs)

• Increase in stock market volatility

• All of the above

 What is a recession?

• A period of economic growth and expansion

• A period of high inflation and rising prices

• A period of declining economic activity, characterized by reduced GDP, increased unemployment, and reduced consumer spending

• A period of stable economic conditions with no significant changes

◦What was the main cause of the 2008 financial crisis?

• ◦Subprime mortgage lending

• Excessive government spending

• ◦Global trade imbalances

• ◦High inflation rates

What is the "Too Big to Fail" concept in investment banking?

• ) The belief that large investment banks are immune to market volatility

• A regulatory policy that prevents investment banks from failing

• A strategy used by investment banks to minimize risk

• A concept that refers to the systemic risk posed by large financial institutions

 Which investment bank filed for bankruptcy in 2008 during the financial crisis

• JPMorgan

• Goldman Sachs

• Lehman Brothers

• Deutsche Bank

 What was the main cause of the Savings and Loan crisis in the 1980s?

• Excessive government spending

• Rising Inflation Rates

• Risky lending practices by Savings and Loan institutions

• A decline in global trade

What is the name of the Deutsche Bank CEO who resigned in 2019?

• Christian Sewing

• Anshu Jain

• John Cryan

• Josef Ackermann