Wall Street Virtual Academy Pre-class Quiz

17 Questions

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Wall Street Virtual Academy Pre-class Quiz

This quiz is to help determine your previous financial knowledge and how effective this class will be in teaching you concepts.


Questions and Answers
  • 1. 
    Your name 
  • 2. 
    Your email (please use the one you registered with)
  • 3. 
    What school do you attend?
  • 4. 
    Your cumulative GPA
  • 5. 
    What is GAAP? 
    • A. 

      A standard framework of guidelines for financial accounting

    • B. 

      A set of rules and regulations governing investment banks

    • C. 

      Generally Accountable Actuary Principles

  • 6. 
    The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:
    • A. 

      Balance Sheet

    • B. 

      Income Statement

    • C. 

      Cash Flow Statement

  • 7. 
    Unearned Revenues is what type of account?
    • A. 

      Shareholder Equity

    • B. 

      Income Statement Account

    • C. 

      Liability

    • D. 

      Asset

  • 8. 
    If a company has debt of $100 with a current interest rate of 5%, which of the following would be affected if the interest rate changed to 10%? (select 1 or more)
    • A. 

      Retained Earnings

    • B. 

      Gross Profit

    • C. 

      Taxes Payable

    • D. 

      Cash

  • 9. 
    Which of the following is the most senior financing instrument?
    • A. 

      Senior Subordinated Loan

    • B. 

      2nd Lien Debt

    • C. 

      Common Equity

    • D. 

      Preferred Equity

  • 10. 
    What options do corporations typically evaluate when considering a merger or acquisition of another company? (select 1 or more)
    • A. 

      Raising debt from debt investors

    • B. 

      Providing the target company stock in the acquiring company

    • C. 

      Raising secondary equity

  • 11. 
    An Investment Banker helps companies decide on creative financing strategies for everything from expanding into new territories to buying complementary companies
    • A. 

      True

    • B. 

      False

  • 12. 
    What is a “frictionless asset”?
    • A. 

      An asset that makes you money without you having to sell it, like a bond with a coupon payment

    • B. 

      An asset with a bid-ask spread of 0

    • C. 

      An asset that you sell within 3 days of purchase

  • 13. 
    What is the “bid-ask” spread?
    • A. 

      The gap between what a stock broker will offer for a stock, and what someone paid for that stock

    • B. 

      The difference of value in each transaction a trader executes

    • C. 

      The difference between a quoted price at which someone will sell their asset, and the quoted price at which someone would buy that same asset

    • D. 

      The difference in value of what a company owns an asset for and what its depreciated value is

  • 14. 
    What knowledge backgrounds are highly useful for a trader? (Select 1 or more)
    • A. 

      Marketing

    • B. 

      Statistics

    • C. 

      Economics

    • D. 

      Finance

  • 15. 
    Select which best describes a sales & trading position
    • A. 

      Sales & Trading revolves around pitches to corporate clients in the hopes of winning the opportunity to execute their financings

    • B. 

      A position in which you perform lots of research and summarize that research for reports

    • C. 

      A fast paced environment in which clients buy and sell various financial assets based on the intelligence and strategies of the team

  • 16. 
    People who like to keep up with day to day global, economic and industry specific news can do well in a markets driven position
    • A. 

      True

    • B. 

      False

  • 17. 
    Select knowledge backgrounds that are helpful to an investment banker: 
    • A. 

      Accounting

    • B. 

      Finance

    • C. 

      Business Strategy

    • D. 

      Healthcare