IBO-unit 1

What is the primary function of an investment bank?

• Retail banking

• Capital raising and advisory services

• Insurance services

What is the primary goal of a financial advisory service offered by investment banks?

• Maximizing shareholder returns

• Minimizing tax liabilities

• Achieving social responsibility

What is the primary role of underwriting in the context of securities issuance?

• Trading execution

• Marketing strategies

• Risk assessment

Which type of underwriting involves a group of underwriters jointly assuming the risk and the responsibility of selling the entire issue of securities?

• Standby underwriting

• Syndicate underwriting

• Best efforts underwriting

In a firm commitment underwriting, the underwriter agrees to:

• Purchase securities at the best available market price

• Only sell a portion of the securities to the public

• Purchase and resell securities at a guaranteed price

What is the primary function of commercial banks?

• Stock trading

• Accepting deposits and providing loans

• Issuing government bonds

Which department of a commercial bank is responsible for managing the bank's financial risks and ensuring compliance with regulations?

• Retail banking

• . Investment banking

• Risk management

What is a "Bulge Bracket" investment bank?

• An investment bank focused on small and medium-sized enterprises (SMEs)

• A large, globally recognized investment bank with a broad range of services

• An investment bank specializing in government bond underwriting

Which type of investment bank typically specializes in providing financial services to specific industries or sectors?

• Bulge Bracket investment bank

• Boutique investment bank

• Regional investment bank

What is the primary objective of a multinational corporation (MNC)?

• Maximize profits in the home country only

• Minimize global market presence

• Expand operations and maximize profits across multiple countries