Investment Banking - Test ( Batch end )

What is the main role of an investment banker?

• To process financial records using manual and computerized systems

• To act as financial advisors to corporations, to help raise capital

• To help clients by assisting with services (Ex: setting up checking account)

Answer explanation

The main role of an investment banker is to act as financial advisors to corporations, helping them raise capital.

True or False: Aarush, Aashi, and Eshaan are all considering a career in investment banking, a field known for its competitiveness and demanding work hours. True or False: Investment banking is a competitive field that requires a solid education background and long hours

• True

• False

Answer explanation

Investment banking is a competitive field that requires a solid education background and long hours. True is the correct choice.

Choose multiple answers: What types of companies are most likely to hire an investment banker?

• Big companies planning mergers and acquisitions

• Companies looking to expand

• Public and financially stable companies

• Young companies planning to go public

Answer explanation

Investment bankers are most likely to be hired by big companies planning mergers and acquisitions, companies looking to expand, and young companies planning to go public.

True or False: A professional accounting designation required to be an investment banker

• True

• False

Answer explanation

A professional accounting designation is not required to be an investment banker. Therefore, the correct choice is False.

What was the Norbourg scandal about?

• The CEO kept billions of dollars of debt off the company’s balance sheet

• The company had had inflated its revenues by making false entries

• The company had intentionally overstated earnings in the company’s books

• The company owner diverted the company funds into funds for personal use

Answer explanation

The Norbourg scandal involved the company owner diverting company funds for personal use.

Select multiple: Which degrees are the most common for an investment banker?

• Data analytics

• Finance

• Accounting

• Economics

Answer explanation

The most common degrees for an investment banker are Finance, Accounting, and Economics.

How many hours does an investment banker typically work per week?

• 45 hours

• 70 hours

• 105 hours

• 120 hours

Answer explanation

An investment banker typically works around 105 hours per week, making it the correct choice.

By what organization do you need approval by before you start working as an investment banker?

• PRA

• CRA

• IRS

• IIROC

Answer explanation

Before starting as an investment banker, you need approval from IIROC (Investment Industry Regulatory Organization of Canada).

What is an acquisition?

• When a company purchases another company's shares

• When a company is accused of a crime

• When a company merges with another company to form a larger firm

• When gas prices are raised

Answer explanation

An acquisition refers to when a company purchases another company's shares, forming a larger firm. This is the correct choice.

Why might there be a rise in investment bankers in the future? What causes this trend?

• The high income despite the pandemic

• It is very easy to get into school for it

• The increase in technology that sparks interest for lots of this generation

Answer explanation

The rise in investment bankers in the future is driven by the increase in technology, which sparks interest for many in this generation.