#1
What is the primary role of investment banks?
Issuing banknotes
Providing loans to individuals
Facilitating capital raising and corporate transactions
Managing retail banking operations
#2
Which of the following is NOT a typical service provided by investment banks?
Mergers and acquisitions advisory
Retail banking services
Underwriting securities offerings
Asset management
#3
What is the process of raising capital by selling shares of a company to institutional investors and the general public for the first time?
Venture capital funding
Mergers and acquisitions
Initial Public Offering (IPO)
Private equity investment
#4
Which of the following is a key characteristic of investment banks?
Accepting deposits from customers
Offering mortgage loans
Providing financial advice to retail clients
Engaging in trading and securities activities
#5
Which of the following is NOT a typical department within an investment bank?
Risk management
Compliance
Human resources
Quantitative analysis
#6
Which of the following is NOT a type of financial market?
Equity market
Foreign exchange market
Options market
Supply market
#7
What does the term 'IPO' stand for in investment banking?
Initial Public Offering
International Portfolio Organization
Investment Position Optimization
Initial Price Offering
#8
Which of the following is a primary function of the trading desk in an investment bank?
Providing loans to individuals
Managing investment portfolios for clients
Facilitating buying and selling of financial instruments
Advising on corporate strategy
#9
What is the term used to describe the process of combining two companies to form a single entity?
Venture capital
Leveraged buyout
Mergers and acquisitions
Initial Public Offering
#10
What is the primary function of an investment banker in an initial public offering (IPO)?
Underwriting securities
Executing trades on the stock exchange
Providing retail banking services
Managing investment portfolios
#11
Which regulatory body oversees investment banks in the United States?
Financial Industry Regulatory Authority (FINRA)
Securities and Exchange Commission (SEC)
Federal Reserve System (Fed)
Commodity Futures Trading Commission (CFTC)
#12
What is the term used to describe the process of dividing a company into separate business units and selling them off independently?
Divestiture
Acquisition
Leveraged buyout
Spin-off
#13
What is the purpose of due diligence in investment banking?
To evaluate the performance of the stock market
To assess the risk associated with an investment
To provide financial advice to individual investors
To conduct market research for a new product launch
#14
Which department within an investment bank is responsible for advising clients on strategic decisions and managing corporate relationships?
Research department
Trading desk
Investment banking division
Compliance department
#15
What is the primary goal of restructuring in investment banking?
Maximizing shareholder value
Increasing market volatility
Lowering interest rates
Encouraging speculative trading
#16
Which of the following is a characteristic of high-yield bonds?
They have a low credit rating
They have a low interest rate
They are issued by government entities
They are considered low risk
#17
Which of the following is a characteristic of mezzanine financing?
It involves issuing equity shares
It has a low level of risk
It is typically senior to other forms of debt
It combines debt and equity features