Financial Services Sector Quiz

Which specific institutional investors are mentioned as clients of investment banks?

• Retail customers

• Pension funds and asset managers

• Government bodies

• Educational institutions

Which type of income is collected in the case of equities by custodian banks?

• Rent

• Dividends

• Salaries

• Royalties

What term is used for savings institutions in North America?

• Cajas

• Credit unions

• Building societies

• Mutual societies

In debt crowdfunding, what do investors receive in return for their investment?

• Equity in the company

• Interest on their money

• A thank you note

• Free products

What is the practice of funding a project by raising small amounts of money from many people called?

• Venture capital

• Crowdfunding

• Angel investing

• Stock market

What is the practice of increasing total wealth over time by acquiring, maintaining, and trading investments called?

• Financial planning

• Asset management

• Risk assessment

• Budgeting

What is the relationship between fund managers and asset managers?

• They are completely different roles

• Fund managers are a type of asset manager

• Asset managers work under fund managers

• They have no relationship

What is the primary role of a custodian bank in the financial industry?

• To safeguard and manage securities for clients

• To offer insurance services

• To conduct market research

• To provide loans to individuals

Which type of investment involves purchasing a share of ownership in a company?

• Bonds

• Equities

• Mutual funds

• Real estate

What is the term for the process of evaluating the potential risks and returns of an investment?

• Market analysis

• Asset allocation

• Risk assessment

• Portfolio diversification