Investment Banking Practice Exam
UPDATED QUESTIONS AND CORRECT
ANSWERS
Which of the following groups in an investment bank would be considered public side?
A) M&A Group
B) Equity Research
C) Industrials
D) Equity Capital Markets - CORRECT ANSWER Equity Research
They are researching publicly held company stock in invest in
An investment bank that provides the entire suite of banking services and largely caters to larger,
multi-national clients is often referred to as a ... ? - CORRECT ANSWER Bulge Bracket Bank
The biggest kind
True/False
The Glass-Steagall Act of 1933 allowed commercial banks to continue to transact in securities and
trading functions - CORRECT ANSWER False - Glass-Steagall separated commercial banks
from investment banks
What investment banking group are you most likely to interact with as a wealthy investor? -
CORRECT ANSWER Asset MGMT - AKA Wealth MGMT
Issuing a fairness opinion is an example of service offered by an investment bank to:
A) A company issuing equity
B) A company issuing debt
C) A company being sold
D) During a roadshow - CORRECT ANSWER C) A company being sold
, What is the area investment banks continue to expand their hiring in today even amid pressures from
shareholders to improve RoEs? - CORRECT ANSWER Technology
It's the feeeuture
Which of the following is not an industry coverage group?
A) Natural Resources
B) Technology
C) Derivatives
D) Financial Services - CORRECT ANSWER C) Derivatives
True/False
The formation of Morgan Stanley was the result of senior partners and staff leaving JP Morgan to start
a new firm pursuant to changes imposed by the Glass-Stegall Act of 1933 - CORRECT ANSWER
True
"Classic" investment banks are primarily responsible for -
i) Helping companies raise capital
ii) Advising on mergers and acquisitions
A) Neither
B) Only ii
C) Only i
D) Both i and ii - CORRECT ANSWER D) Both are correct
Proprietary trading by investment banks has declined since the financial crisis because -
i) Capital requirements have made it onerous on the banks to hold these assets
ii) Returns are not attractive ennough
A) Only i
UPDATED QUESTIONS AND CORRECT
ANSWERS
Which of the following groups in an investment bank would be considered public side?
A) M&A Group
B) Equity Research
C) Industrials
D) Equity Capital Markets - CORRECT ANSWER Equity Research
They are researching publicly held company stock in invest in
An investment bank that provides the entire suite of banking services and largely caters to larger,
multi-national clients is often referred to as a ... ? - CORRECT ANSWER Bulge Bracket Bank
The biggest kind
True/False
The Glass-Steagall Act of 1933 allowed commercial banks to continue to transact in securities and
trading functions - CORRECT ANSWER False - Glass-Steagall separated commercial banks
from investment banks
What investment banking group are you most likely to interact with as a wealthy investor? -
CORRECT ANSWER Asset MGMT - AKA Wealth MGMT
Issuing a fairness opinion is an example of service offered by an investment bank to:
A) A company issuing equity
B) A company issuing debt
C) A company being sold
D) During a roadshow - CORRECT ANSWER C) A company being sold
, What is the area investment banks continue to expand their hiring in today even amid pressures from
shareholders to improve RoEs? - CORRECT ANSWER Technology
It's the feeeuture
Which of the following is not an industry coverage group?
A) Natural Resources
B) Technology
C) Derivatives
D) Financial Services - CORRECT ANSWER C) Derivatives
True/False
The formation of Morgan Stanley was the result of senior partners and staff leaving JP Morgan to start
a new firm pursuant to changes imposed by the Glass-Stegall Act of 1933 - CORRECT ANSWER
True
"Classic" investment banks are primarily responsible for -
i) Helping companies raise capital
ii) Advising on mergers and acquisitions
A) Neither
B) Only ii
C) Only i
D) Both i and ii - CORRECT ANSWER D) Both are correct
Proprietary trading by investment banks has declined since the financial crisis because -
i) Capital requirements have made it onerous on the banks to hold these assets
ii) Returns are not attractive ennough
A) Only i
