Banking Review

What is the primary service offered by private banks?

• Retail banking

• Investment advisory

• Insurance sales

• Mortgage lending

Private banking clients are typically

• Retail customers

• High-net-worth individuals

• Small business owners

• d. Students

What is the main benefit of private banking for clients?

• High-interest savings accounts

• Personalized financial services and advice

• Online banking convenience

• Low fees

Hedge funds are typically open to

• Retail investors

• Accredited investors

• Anyone with a bank account

• Pension funds

What is the primary objective of a hedge fund?

• Preservation of capital

• Low-risk, high-return investments

• Long-term retirement planning

• Socially responsible investing

Hedge funds often use various strategies, including

• Diversification

• Leverage and short selling

• Traditional savings accounts

• Fixed-rate mortgages

Private equity firms invest in

• Publicly traded companies

• Government bonds

• Start-ups and private companies

• Real estate

Private equity investments typically involve

• High liquidity

• Short holding periods

• Active management and restructuring

• Passive, long-term strategies

Which of the following is an exit strategy used by private equity firms

• IPO (Initial Public Offering)

• Currency trading

• Day trading

• Cryptocurrency investments

Short selling is a strategy where an investor

• Buys a stock and holds it for the long term

• Borrows and sells a security they don't own, hoping to buy it back at a lower price

• Sells a stock and holds it indefinitely

• Only invests in bonds