Investment Banking Functions - Part 3

What does "VaR" (Value at Risk) measure?

• A bank’s total assets

• Potential trading losses over a set time period

• Client satisfaction levels

• Loan interest rates

Which team is responsible for daily P&L reporting?

• Trade Support

• Product Control

• Sales & Trading

• Corporate Actions

What is a key task of the Risk Analytics team?

• Running stress tests and scenario analysis

• Processing payroll

• Designing marketing materials

• Booking trades

Which of the following is a Middle Office function?

• Selling IPOs to investors

• Executing client trades

• Reconciling cash and securities positions

• Printing stock certificates

What is the main responsibility of the Back Office?

• Making markets for clients

• Settling trades and maintaining records

• Advising on M&A deals

• Developing trading algorithms

What does "T+1" settlement mean?

• Trades settle one week after execution

• Trades settle one hour after execution

• Trades settle in real-time

• Trades settle one business day after execution

Which team processes stock splits and dividend payments?

• Trade Support

• Compliance

• Risk Management

• Corporate Actions

Which regulatory body oversees U.S. IPOs?

• FED (Federal Reserve)

• FINRA

• FED

• SEC (Securities & Exchange Commission)

In M&A, what does "synergy" refer to?

• The fee paid to investment bankers

• A type of hostile takeover

• The legal merger document

• Cost savings or revenue boosts from combining companies

What is a "boutique" investment bank?

• A bank serving only retail customers

• A crypto-focused bank

• A small firm specializing in niche areas like M&A

• A government-owned bank