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WorksheetsInvestment Banking - Test ( Batch end )
Total questions: 120
Worksheet time: 2hrs 0mins
What is the main role of an investment banker?
To process financial records using manual and computerized systems
To act as financial advisors to corporations, to help raise capital
To help clients by assisting with services (Ex: setting up checking account)
True or False: Aarush, Aashi, and Eshaan are all considering a career in investment banking, a field known for its competitiveness and demanding work hours. True or False: Investment banking is a competitive field that requires a solid education background and long hours
True
False
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
True or False: A professional accounting designation required to be an investment banker
True
False
What was the Norbourg scandal about?
The CEO kept billions of dollars of debt off the company’s balance sheet
The company had had inflated its revenues by making false entries
The company had intentionally overstated earnings in the company’s books
The company owner diverted the company funds into funds for personal use
Select multiple: Which degrees are the most common for an investment banker?
Data analytics
Finance
Accounting
Economics
How many hours does an investment banker typically work per week?
45 hours
70 hours
105 hours
120 hours
By what organization do you need approval by before you start working as an investment banker?
PRA
CRA
IRS
IIROC
What is an acquisition?
When a company purchases another company's shares
When a company is accused of a crime
When a company merges with another company to form a larger firm
When gas prices are raised
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
What is the main role of an investment banker?
To process financial records using manual and computerized systems
To act as financial advisors to corporations, to help raise capital
To help clients by assisting with services (Ex: setting up checking account)
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
Merchant banking activities was originated with the merchant banking division set by
yes bank
Grinds bays bank
none of the above
The early growth of merchant banking in the country is assigned to the
Foreign exchange regulations act 1973
fema
Income tax act
State bank of india started merchant banking in _______ followed by icici in ________
1980 , 1981
1978 , 1980
1973 , 1974
Formal merchant banking activity in India was originated in which year?
1969
1963
1974
A merchant banking is a financial institutions conducting money market activities and a lending
underwriting and financial advice
Investment service
All of above
Lead of merchant banker should advice the issuer to enter into _______________ intermediary for the purpose of issue management.
Agreement
Arrangement
Memorandam of association
Shreya, Dia, and Sanya are considering hiring a merchant banker. Which category of merchant banker can act as : ________
All issue management functions
Underwriter
Consultant
The lead merchant bankers under category shall accept a minimum underwriting of _____
20%
0.25%
100%
5%
Merchant banks deal with funds raised through ______________ and capital market.
Secondary Market
Primary Market
money market
Securities market
A merchant bank can help a company specifically in which function?
Sponsoring the issue
Marketing
All of the above
_______________ covers the entire range of services provided by a merchant banker.
Cooperate counselling
Project counselling
Credit syndication
Financial services companies exclude : ________
Sole proprietor
Inurance companies
Co-operative Banks
commercial banks
Issue management is an important function of _____________ and ___________
Public manager and merchant banker
Bank manager and lead manager
Merchant banker and lead manager
none of the above
______ is regarded as the fourth element of the financial system.
Financial services
Financial markets
Financial institutions
Financial instruments
RBI may collect from the merchant bankers an initial authorisation fee, an annual fee and renewal fee.
True
False
Find odd one: challenges faced by the merchant bankers in India.
Entry restrictions
Legal aspect
Poor new issue market
Banking policies
SEBI guidelines
What differs merchant (investment) bank from commercial one?
Merchant banks work mainly with the government
Merchant banks work mainly with individuals
Merchant banks deal mainly with businesses
Merchant banks deal mainly with 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.
Which of the following is not an investment?
Wage
Property
Stocks
Shares
If Aashi buys part of a company, this is called a
Share
Dividend
Patent
When a company successfully generates profit, what does it distribute to its shareholders?
Tax
Dividend
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
What is the real-world scenario for investment?
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
Which investment makes one an owner
investment in NSC
investment in bond
investment in debenture
investment in equity
________ is the chance of loss or the variability of returns associated with a given asset.
Return
Value
Risk
Probability
In investment management, what should be maximized to achieve the best outcome?
Return
Risk
Return and Risk
None of the above
Which of the following is considered as risk free investment?
gold
equity
bonds
treasury bills
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
If the price of a share at the beginning of the year was Rs.70/-, dividend received during the year was Rs.5/-per share and the price at the end is Rs.79/-. What is the rate of return?
23%
15%
20%
25%
company analysis try to answer the questions; (choose any two)
Has the company performed better in comparison with its performance in the previous years?
Has the company performed better in managing the creditors ?
Has the company performed better in comparison with its susidiaries in foreign market
Has the company performed better in comparison with its peer companies in the same industry?
tick any three qualitative variables taken into consider while doing a fundamental analysis
competitive edge
profitability
management
Corporate culture
_______ a network of savers, investors, financial assets, and financial institutions that work together to transfer savings to investment uses
secondary market
primary market
financial system
capital market
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
The oldest stock exchange in India is
Delhi Stock Exchange
National Stock Exchange
Bombay Stock Exchange
Madras Stock Exchange
Financial
intermediaries can substantially reduce transaction costs per dollar of
transactions because their large size allows them to take advantage of
Poorly informed consumers
Standardization
Economies of scale.
Their market power.
What is it called when Aarush and Kavya deal directly with each other, without the help of a financial institution?
Private room
Privacy Act of 2012
Private Placement
Stocks and Bonds
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
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
What is the principal function of investment banks in the Financial Services industry?
Providing loan services
Creating and managing retirement accounts
Underwriting, issuing, and trading stocks and bonds
Managing employees’ salaries
What is the primary purpose of corporate finance?
Creating and managing retirement accounts
Leveraging debt financing for different projects
Providing investment advisory services
Monitoring and managing foreign investments
What is securitization?
The process of transferring financial assets into cash
The process of issuing different types of securities to investors
The process of aggregating multiple assets into a tradable security
The process of restructuring a company’s debts
What is the primary role of a financial analyst?
Assisting companies in issuing debt securities
Providing loan services to businesses
Researching and analyzing financial markets
Advising companies on investment opportunities
What type of financial services are provided by commercial banks?
Underwriting and issuing stocks and bonds
Establishing private funds
Creating and managing retirement accounts
Providing loan services
What are Asset Based Lending (ABL) services?
Providing investments to small businesses
Creating and managing mutual funds
Providing short-term finance secured on a company’s assets
Buying and selling stocks and bonds
What is mergers and acquisitions (M&A)?
Combining of two or more companies into a single entity
Trading of assets and liabilities between two companies
Providing financial advice on capital investments
Creating and managing mutual funds
What is capital structuring?
Managing a company’s debts and equity
Issuing debt securities to investors
Undertaking foreign investments
Providing loan services to businesses
What is the main difference between venture capital and private equity?
Venture capital is focused on developing new projects whereas private equity focuses on mature businesses
Venture capital is provided by governmental bodies whereas private equity is unsecured and obtained from financial institutions
Venture capital is focused on existing businesses whereas private equity is focused on new projects
Venture capital is unsecured whereas private equity is secured
What is risk management?
Monitoring and managing foreign investments
Seeking investment advice from a financial analyst
Evaluating and monitoring the risks involved in a particular investment
Creating and managing retirement accounts
What is stress testing?
The process of analyzing the impact of various market conditions on a company
Performing an audit to assess the financial health of a company
Identifying opportunities for investment
Providing long-term financial advice
What is a private fund?
A fund to facilitate trading of stocks and bonds
A fund created by financial advisors for retirement accounts
A fund to provide loans to businesses
A pool of capital, managed by a team of investors, to purchase and manage investments
What is Initial public offering (IPO)?
The process of transferring private companies to public companies
The process of issuing short-term debt securities
The process of issuing long-term debt securities
The process of issuing equity securities to the public
The liberalization of Indian Banking and Regulation was done based on recommendation of _______?
R Gandhi Committee
Narasimham Committee
Basel committee
Khusro Committee
Name the micro finance company that becomes the first to start operation as a commercial bank
Pay Tm Bank
Vodafone M Pisa Bank
Bandhan Bank
Yes Bank
Which of the following regulates Credit Rating agencies in India?
RBI
NSE
SEBI
ICAI
FATCA Stands for
Foreign Account Tax Compliance Act
Foreign Account Trade Company Act
Financial Account Tax Compliance Act
Fiscal Account Tax Compliance Act
What does the M in M-banking stands for?
money
message
mobile
mutual fund
As per which act, holidays are provided in the banks?
RBI Act
Banking Regulation Act
as per orders of Govt.
Banking Nationalisation Act
world investment report is published by
UNDP
World Bank
IMF
UNCTAD
Merchant banking in India is governed by
SEBI
IRDA
RBI
Ministry of Finance
If you wish to purchase US dollars to travel abroad, you will approach:-
Ministry of finance
US Embassy
Any bank branch authorized for such activity
External Affairs ministry
If a bank has to borrow funds from RBI for a long term, which among the following will be applicable?
Repo Rate
Reverse Repo
Bank Rate
liquidity Adjustment Facility
Minimum and maximum limit for RTGS
(a)
Cheque is a (a) instrument
Bhadti ka naam zindagi
axis bank
bank of baroda
bandhan bank
bank of baroda
lets make money simple
Kotak Mahindra
yes bank
Citi bank
bank of baroda
knowledge is Power
Financial Express
The Economic Times
Hindustan Times
none of above
IRDA stands for
Indian Regulatory Development Authority
Insurance Regulatory Development Authority
Investment in Insurance Regulatory Development Authority
none of the above
which company is the sole public sector life insurance company
Standard life insurance
Bharti Axa life insurance
Life Insurance Corporation of India
none of above
For what kind of transactions are demat accounts necessary
For having mobile banking facilities
For taking retail loans from banks
For trading in shares of companies
For non resident account
Which of the following is not necessarily involved in an IPO process
underwriter
registrar of companies
registrar of issue
investment bank
Which of the following indicates the wealth of a person
Asset
Bank balance
capital
Net worth
Merchant banking activities was originated with the merchant banking division set by
yes bank
Grinds bays bank
none of the above
The early growth of merchant banking in the country is assigned to the
Foreign exchange regulations act 1973
fema
Income tax act
State bank of india started merchant banking in _______ followed by icici in ________
1980 , 1981
1978 , 1980
1973 , 1974
Formal merchant banking activity in india was orginated in
1969
1963
1974
A merchant banking is a financial institutions conducting money market activities and a lending
underwriting and financial advice
Investment service
All of above
Lead of merchant banker should advice the issuer to enter into _______________ intermediary for the purpose of issue management.
Agreement
Arrangement
Memorandam of association
Category 1 of merchant banker can act as : ________
All issue management functions
Underwriter
Consultant
The lead merchant bankers under category shall accept a minimum underwriting of _____
20%
0.25%
100%
5%
Merchant banks deal with funds raised through ______________ and capital market.
Secondary Market
Primary Market
money market
Securities market
Merchant bankers are : ___________
Merchant
Banks
Neither merchants nor banks
A merchant bank can help an organization specifically in promotion functions
Sponsoring the issue
Marketing
All of the above
_____________ operates in inter bank call money market.
Commercial Banks
Central Bank (RBI)
Co-operative Banks
Financer house of India
Find odd one : Authorization criteria of merchant bankers
Professional competence
All business performed
Capital adequacy
_______________ covers the entire range of services provided by a merchant banker.
Cooperate counselling
Project counselling
Credit syndication
Functional of financial services exclude : _______
Mobilisation of savings
Collection Tax
Allocation of funds
Financial services companies exclude : ________
Sole proprietor
Inurance companies
Co-operative Banks
commercial banks
Issue management is an important function of _____________ and ___________
Public manager and merchant banker
Bank manager and lead manager
Merchant banker and lead manager
none of the above
Role of merchant banking is Innovation.
False
True
Merchant banks shall not associate with any business other than that of the securities market.
True
False
Which of the following is not a fee‐based financial service?
Corporate counseling
Lease financing
Issue management
Profit management
NBFC is a company registered under _________.
The RBI Act
The Indian Contract Act
The Companies Act, 1956
Co-operative society Act
Responsibilities of merchant bankers.
Legal aspect
Banking policies
To the investors
Corporate dynamics
