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WorksheetsBasics of Investment Banking ( 65 Q)
Total questions: 65
Worksheet time: 1hrs 5mins
Financial Investment is the
persons commitment to buy a flat or house
employment of funds in securities to earn returns
employment of funds on assets to earn returns
keeping money in locker
Saving is for
for emergency
materializing the dream
Funding happy retirement
for all
Stock exchange is
Primary market
forex market
spot market
Secondary market
Which of the following is outside the purview of investment class
Purchase of debenture
Savings bank deposits
Current account deposits
Fixed deposits
Which of the following is not a financial investment?
Purchase of debenture
Purchase of car
Purchase of machine
Purchase of bond
Investment can be defined.
Use of capital on assets to receive returns
Person’s dedication to purchasing a house or flat
Usage of money on a production process of products and services
Net additions made to the nation’s capital stocks
The finance manager is accountable for.
Proper utilization of funds
Effective management of a fund
Arrangement of financial resources
Earning capital assets of the company
The market value of a share is responsible for.
The respective companies
Shareholders
The government
The investment market
Which of the following is the activity which finance people are involved?
marketing decision
promotional decision
Investing decision
None of these
The purpose of financial markets is to?
Lower the yield on bonds
Allocate savings efficiently
Control inflation
Increase the price of common stocks
Which one of the following is shown first when the assets are arranged in the order of their liquidity?
Cash in hand
investment in gold
investment in Land
investment in stock market
Horse racing, game of cards, lottery are the typical examples of ______________
Investment
Gambling
Speculation
Arbitrage
Which investment makes one an owner
investment in NSC
investment in bond
investment in debenture
investment in equity
Which investment makes one a lender?
Investment in Equity share
investment in preference share
investment in debenture
investment in land
The regulatory body for the securities market in India is ------------.
RBI
SEBI
IRDA
NABARD
Who controls money market?
RBI
SBI
SEBI
IRDA
Which of the following is the function of financial market?
Mobilization of savings
Price fixation
Provide liquidity to financial assets
All of the above
__________ is the organisations, institutions that provide long term funds.
Gilt Market
Forex Market
Money Market
Capital Market
Stock exchange is known as __________ market for securities.
Primary market
Secondary market
money market
Forex market
_________ is a market for lending & borrowing of short term funds.
Money Market
capital Market
Forex Market
Secondary Market
____________ is based on tips, rumours and hunches, unplanned and without knowledge of the exact nature of risk.
Investment
Speculation
Gambling
Arbitrage
_________ risks cover the risk of market, interest rate risk and purchasing power risk.
Unsystematic risk
Systematic
Financial
Business
Purchasing power risk is also known as________
Inflation risk
Business risk
Financial risk
Market risk
Variance calculation and measuring the Standard deviation is one way of measuring the ______
Return
Speculation
Gambling
Risk
Investors agree to invest in high- risk investments if only
There are any true speculations
The predicted return is satisfactory for taking a risk
There are no safe options except for holding cash
The return is short
Economic well being of a person depends on
how much you save
how much you invest
how wisely you invest
none of these
Real estate investment means
Investment in houses
Investment in flats
Investment in bungalows
all of these
Stock exchange is a
Primary market
secondary market
Money market
none of these
Financial assets include
Bank deposits
Investment in debentures/bonds
Investment in equity shares
all of these
Employment of funds with the aim of achieving additional income is known as____
Speculation
Gambling
Biting
Investment
Who spreads awareness about mutual funds in india ?
SBI
ICICI
AMFI
Bank of Baroda
A mutual fund is a pool of money managed by a professional _____
Banker
Bank teller
Accountant
Fund manager
What is FPO
Final private offer
First public order
Final public offer
None of the above
Why do companies issue stocks?
To create and investment opportunity into other businesses.
To increase employee cooperation and an operating level.
To be traded individually
To raise money for economic investment and to fund operating costs.
The return of a share holder is
Rate of interest
Dividend
Discount rate
Discount value
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
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
Financial services companies exclude : ________
Sole proprietor
Inurance companies
Co-operative Banks
commercial banks
_____ service is offered by the merchant banker to get term loan for project, help client make appraisal, designing capital structure etc
Underwriting
Loan Syndication
Issue Management
A fixed-income security is defined as:
a debt obligation that pays a fixed rate of return for a one-year period.
common or preferred stock that pays a fixed annual dividend.
a long-term debt obligation that pays scheduled fixed payments.
long-term debt issued solely by a federal or state government.
Most investors are risk averse which means:
they will assume more risk only if they are compensated by higher expected return
they will always invest in the investment with the lowest possible risk
they actively seek to maximize their return
they avoid the stock market due to the high degree of risk
The SENSEX has
50 stocks
25 stocks
30 stocks
100 stocks
Investors with risk-loving characteristics will purchase securities with higher expected returns, lesser risks, and more liquidity. Do you agree with this statement?
True
False
Hedging means:
reducing risks
increasing risks
being ready to take risks
avoiding risks
Employment of funds with the aim of achieving additional income is known as____
Speculation
Gambling
Biting
Investment
The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage
Penalty
Interest Rate
Emergency Fund
Index
Money set aside for unanticipated expenses or loss of income
Mutual Fund
T-Note
Index Fund
Emergency Fund
A fee you’ll be charged for withdrawing money before a CD’s maturity date
Index
Interest
Risk
Penalty
The time period an investment is intended to last
Maturity Date
Term
Interest
Diversification
A market where shares in corporations are bought and sold through an organized system.
Portfolio
Index
Stock Market
CD
A share of the value of a company, which can be bought, sold or traded as an investment and which gives the investor partial ownership of the company
CD
Mutual Fund
T-Note
Stock
A collection of stocks and/or bonds combined into one fund, which will be traded as a unit, typically chosen and actively managed by an expert in exchange for a fee from each investor.
Stock
Bond
T-Note
Mutual Fund
A sudden and extreme downturn in stock performance/value
Index
Crash
Penalty
Risk
A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years.
T-Note
Mutual Fund
Emergency Fund
CD
A bond, often having tax advantages for individual investors, issued by a state or local government, typically uses the loan to pay for public works to benefit its citizens.
Index Fund
Commodity
Municipal Bond
Emergency Fund
Semiannually means
Once a year
Every other year
Twice a year
Four times a year
The act of investing in a large variety of stocks, bonds and/or alternative investments, like gold or real estate, as a way to reduce your overall risk.
Dividends
Mutual Fund Investing
Portfolio
Diversification
The overall collection of investments held by a person.
Fund
Portfolio
Savings Account
Certificate of Deposit
A security in which the investor loans money to a company or government, then pays regular interest to the bondholder and returns the principal on the bond’s maturity date
Index Fund
Dividend
Bond
T-Note
A payment made by a publicly traded corporation to its shareholders
Dividend
Index
Commodity
T-Note
A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index
T-Note
CD
Index Fund
Commodity
A raw material or primary agricultural product that can be bought and sold, such as copper or coffee
CD
Dividend
Commodity
Bond
Degree of uncertainty on how likely the investor is to make money on an investment
Index
Risk
Maturity
Penalty
A certificate issued by a bank to a person depositing money for a specified length of time.
Mutual Fund
Index
Bond
Certificate of Deposit (CD)
There are no consequences for withdrawing money from a CD before the maturity date
True
False
