wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

Basics of Investment Banking ( 65 Q)

Total questions: 65

Worksheet time: 1hrs 5mins

Name
Class
Date
1.

Financial Investment is the

a)

persons commitment to buy a flat or house

b)

employment of funds in securities to earn returns

c)

employment of funds on assets to earn returns

d)

keeping money in locker

2.

Saving is for

a)

for emergency

b)

materializing the dream

c)

Funding happy retirement

d)

for all

3.

Stock exchange is

a)

Primary market

b)

forex market

c)

spot market

d)

Secondary market

4.

Which of the following is outside the purview of investment class

a)

Purchase of debenture

b)

Savings bank deposits

c)

Current account deposits

d)

Fixed deposits

5.

Which of the following is not a financial investment?

a)

Purchase of debenture

b)

Purchase of car

c)

Purchase of machine

d)

Purchase of bond

6.

Investment can be defined.

a)

Use of capital on assets to receive returns

b)

Person’s dedication to purchasing a house or flat

c)

Usage of money on a production process of products and services

d)

Net additions made to the nation’s capital stocks

7.

The finance manager is accountable for.

a)

Proper utilization of funds

b)

Effective management of a fund

c)

Arrangement of financial resources

d)

Earning capital assets of the company

8.

The market value of a share is responsible for.

a)

The respective companies

b)

Shareholders

c)

The government

d)

The investment market

9.

Which of the following is the activity which finance people are involved?

a)

marketing decision

b)

promotional decision

c)

Investing decision

d)

None of these

10.

The purpose of financial markets is to?

a)

Lower the yield on bonds

b)

Allocate savings efficiently

c)

Control inflation

d)

Increase the price of common stocks

11.

Which one of the following is shown first when the assets are arranged in the order of their liquidity?

a)

Cash in hand

b)

investment in gold

c)

investment in Land

d)

investment in stock market

12.

Horse racing, game of cards, lottery are the typical examples of ______________

a)

Investment

b)

Gambling

c)

Speculation

d)

Arbitrage

13.

Which investment makes one an owner

a)

investment in NSC

b)

investment in bond

c)

investment in debenture

d)

investment in equity

14.

Which investment makes one a lender?

a)

Investment in Equity share

b)

investment in preference share

c)

investment in debenture

d)

investment in land

15.

The regulatory body for the securities market in India is ------------.

a)

RBI

b)

SEBI

c)

IRDA

d)

NABARD

16.

Who controls money market?

a)

RBI

b)

SBI

c)

SEBI

d)

IRDA

17.

Which of the following is the function of financial market?

a)

Mobilization of savings

b)

Price fixation

c)

Provide liquidity to financial assets

d)

All of the above

18.

__________ is the organisations, institutions that provide long term funds.

a)

Gilt Market

b)

Forex Market

c)

Money Market

d)

Capital Market

19.

Stock exchange is known as __________ market for securities.

a)

Primary market

b)

Secondary market

c)

money market

d)

Forex market

20.

_________ is a market for lending & borrowing of short term funds.

a)

Money Market

b)

capital Market

c)

Forex Market

d)

Secondary Market

21.

____________ is based on tips, rumours and hunches, unplanned and without knowledge of the exact nature of risk.

a)

Investment

b)

Speculation

c)

Gambling

d)

Arbitrage

22.

_________ risks cover the risk of market, interest rate risk and purchasing power risk.

a)

Unsystematic risk

b)

Systematic

c)

Financial

d)

Business

23.

Purchasing power risk is also known as________

a)

Inflation risk

b)

Business risk

c)

Financial risk

d)

Market risk

24.

Variance calculation and measuring the Standard deviation is one way of measuring the ______

a)

Return

b)

Speculation

c)

Gambling

d)

Risk

25.

Investors agree to invest in high- risk investments if only

a)

There are any true speculations

b)

The predicted return is satisfactory for taking a risk

c)

There are no safe options except for holding cash

d)

The return is short

26.

Economic well being of a person depends on

a)

how much you save

b)

how much you invest

c)

how wisely you invest

d)

none of these

27.

Real estate investment means

a)

Investment in houses

b)

Investment in flats

c)

Investment in bungalows

d)

all of these

28.

Stock exchange is a

a)

Primary market

b)

secondary market

c)

Money market

d)

none of these

29.

Financial assets include

a)

Bank deposits

b)

Investment in debentures/bonds

c)

Investment in equity shares

d)

all of these

30.

Employment of funds with the aim of achieving additional income is known as____

a)

Speculation

b)

Gambling

c)

Biting

d)

Investment

31.

Who spreads awareness about mutual funds in india ?

a)

SBI

b)

ICICI

c)

AMFI

d)

Bank of Baroda

32.

A mutual fund is a pool of money managed by a professional _____

a)

Banker

b)

Bank teller

c)

Accountant

d)

Fund manager

33.

What is FPO

a)

Final private offer

b)

First public order

c)

Final public offer

d)

None of the above

34.

Why do companies issue stocks?

a)

To create and investment opportunity into other businesses.

b)

To increase employee cooperation and an operating level.

c)

To be traded individually

d)

To raise money for economic investment and to fund operating costs.

35.

The return of a share holder is

a)

Rate of interest

b)

Dividend

c)

Discount rate

d)

Discount value

36.

Choose multiple answers: What types of companies are most likely to hire an investment banker?

a)

Big companies planning mergers and acquisitions

b)

Companies looking to expand

c)

Public and financially stable companies

d)

Young companies planning to go public

37.

Why might there be a rise in investment bankers in the future? What causes this trend?

a)

The high income despite the pandemic

b)

It is very easy to get into school for it

c)

The increase in technology that sparks interest for lots of this generation

38.

Financial services companies exclude : ________

a)

Sole proprietor

b)

Inurance companies

c)

Co-operative Banks

d)

commercial banks

39.

_____ service is offered by the merchant banker to get term loan for project, help client make appraisal, designing capital structure etc

a)

Underwriting

b)

Loan Syndication

c)

Issue Management

40.

A fixed-income security is defined as:

a)

a debt obligation that pays a fixed rate of return for a one-year period.

b)

common or preferred stock that pays a fixed annual dividend.

c)

a long-term debt obligation that pays scheduled fixed payments.

d)

long-term debt issued solely by a federal or state government.

41.

Most investors are risk averse which means:

a)

they will assume more risk only if they are compensated by higher expected return

b)

they will always invest in the investment with the lowest possible risk

c)

they actively seek to maximize their return

d)

they avoid the stock market due to the high degree of risk

42.

The SENSEX has

a)

50 stocks

b)

25 stocks

c)

30 stocks

d)

100 stocks

43.

Investors with risk-loving characteristics will purchase securities with higher expected returns, lesser risks, and more liquidity. Do you agree with this statement?

a)

True

b)

False

44.

Hedging means:

a)

reducing risks

b)

increasing risks

c)

being ready to take risks

d)

avoiding risks

45.

Employment of funds with the aim of achieving additional income is known as____

a)

Speculation

b)

Gambling

c)

Biting

d)

Investment

46.

The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage

a)

Penalty

b)

Interest Rate

c)

Emergency Fund

d)

Index

47.

Money set aside for unanticipated expenses or loss of income

a)

Mutual Fund

b)

T-Note

c)

Index Fund

d)

Emergency Fund

48.

A fee you’ll be charged for withdrawing money before a CD’s maturity date

a)

Index

b)

Interest

c)

Risk

d)

Penalty

49.

The time period an investment is intended to last

a)

Maturity Date

b)

Term

c)

Interest

d)

Diversification

50.

A market where shares in corporations are bought and sold through an organized system.

a)

Portfolio

b)

Index

c)

Stock Market

d)

CD

51.

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

a)

CD

b)

Mutual Fund

c)

T-Note

d)

Stock

52.

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.

a)

Stock

b)

Bond

c)

T-Note

d)

Mutual Fund

53.

A sudden and extreme downturn in stock performance/value

a)

Index

b)

Crash

c)

Penalty

d)

Risk

54.

A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years.

a)

T-Note

b)

Mutual Fund

c)

Emergency Fund

d)

CD

55.

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.

a)

Index Fund

b)

Commodity

c)

Municipal Bond

d)

Emergency Fund

56.

Semiannually means

a)

Once a year

b)

Every other year

c)

Twice a year

d)

Four times a year

57.

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.

a)

Dividends

b)

Mutual Fund Investing

c)

Portfolio

d)

Diversification

58.

The overall collection of investments held by a person.

a)

Fund

b)

Portfolio

c)

Savings Account

d)

Certificate of Deposit

59.

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

a)

Index Fund

b)

Dividend

c)

Bond

d)

T-Note

60.

A payment made by a publicly traded corporation to its shareholders

a)

Dividend

b)

Index

c)

Commodity

d)

T-Note

61.

A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index

a)

T-Note

b)

CD

c)

Index Fund

d)

Commodity

62.

A raw material or primary agricultural product that can be bought and sold, such as copper or coffee

a)

CD

b)

Dividend

c)

Commodity

d)

Bond

63.

Degree of uncertainty on how likely the investor is to make money on an investment

a)

Index

b)

Risk

c)

Maturity

d)

Penalty

64.

A certificate issued by a bank to a person depositing money for a specified length of time.

a)

Mutual Fund

b)

Index

c)

Bond

d)

Certificate of Deposit (CD)

65.

There are no consequences for withdrawing money from a CD before the maturity date

a)

True

b)

False