18 Questions
What is the primary purpose of financing and M&A in investment banking?
To raise capital for clients
What is the main benefit of project financing in investment banking?
To achieve economies of scale in areas such as research and development
What is the role of investment banks in the capital markets?
To facilitate the operation of the capital markets alongside exchanges and brokers
What is the primary purpose of syndicate loans in investment banking?
To achieve economies of scale in areas such as research and development
What is the result of the merger between Bank of New York and Mellon Financial Corporation?
BNY Mellon
What is the primary reason for the Originate to Distribute (OTD) model in modern banking?
To move away from issuing products to retain them
What has replaced open out-cry trading in the capital markets?
Electronic trading
What is the main factor that led to the 2008 Financial Crisis?
All of the above
What is the primary function of retail banking?
To provide banking services to individual consumers
What is the role of the central bank in setting interest rates?
To set the interest rates for lending and borrowing between banks
What is the Secured Overnight Financing Rate (SOFR)?
A measure of the cost of borrowing cash overnight collateralized by Treasury securities
What is the main benefit of the Securitization process in banking?
It provides a new source of funding for banks
What type of clients are assumed to be more informed investors and take more financial risks?
Professional clients
What is the purpose of offering research and advisory services for free?
To encourage clients to use other fee-based services
Which of the following is NOT a type of client of an investment bank?
Retail investors
What is an example of a service offered by investment banks to their clients?
Company Restructuring
Who are examples of institutional investors?
Pension funds and insurance firms
What is an example of a type of client that may require wealth structuring services?
Celebrities
Test your knowledge of the evolution of modern banking, money market funding, and the factors that led to the 2008 financial crisis. Learn about the shift from traditional banking to new derivative products and proprietary trading. Understand the role of regulatory bodies and the impact of short-term profits on the banking industry.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
