Investment Training - Part1 And 2

20 Questions | Total Attempts: 51

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Investment Quizzes & Trivia

This quiz is to test your understanding of Part 1and 2 of the Investment Training held for EBA staff


Questions and Answers
  • 1. 
    The capital market offers short term securities (less than one year)
    • A. 

      True

    • B. 

      False

  • 2. 
    Debt security exist in both the capital as well as the money market?
    • A. 

      True

    • B. 

      False

  • 3. 
    Bondholders are able to participate in the profits of the company?
    • A. 

      True

    • B. 

      False

  • 4. 
    Dividend are fixed payments made to investors?
    • A. 

      True

    • B. 

      False

  • 5. 
    When interest rates rise, bond values fall
    • A. 

      True

    • B. 

      False

  • 6. 
    Hybrid securities are a mix of short term and long term securities?
    • A. 

      True

    • B. 

      False

  • 7. 
    Asset backed securities are debt securities
    • A. 

      True

    • B. 

      False

  • 8. 
    Inter-bank lending takes place in the money market
    • A. 

      True

    • B. 

      False

  • 9. 
    Debt securities carry voting rights
    • A. 

      True

    • B. 

      False

  • 10. 
    In liquidation, ordinary shareholders rank above creditors?
    • A. 

      True

    • B. 

      False

  • 11. 
    Name two hybrid Securities
    • A. 

      Common Stock

    • B. 

      Convertibles

    • C. 

      Equity warrants

  • 12. 
    Name two money market securities
    • A. 

      Repurchase agreement

    • B. 

      Asset backed securities

    • C. 

      Convertibles

    • D. 

      Treasury bills

  • 13. 
    Name two capital market securities
    • A. 

      Subprime

    • B. 

      Floating rate bonds

    • C. 

      Common stock

    • D. 

      Repurchase agreements

    • E. 

      Mortgge backed securities

  • 14. 
    Name two other type of financial market apart from capital and money market
    • A. 

      Commodities Market

    • B. 

      Pensions market

    • C. 

      Agricultural market

    • D. 

      Foreign Exchange market

  • 15. 
    A repurchase agreement is ......................... with an agreement to repurchase them at a fixed price on a fixed date.
  • 16. 
    The Trustees must review their SIPP documents at least twice per year
    • A. 

      True

    • B. 

      False

  • 17. 
    The SIPP must be submitted 90 days after a Fund or Scheme has been approved by the FSC?
    • A. 

      True

    • B. 

      False

  • 18. 
    The Term risk tolereance means?
    • A. 

      THe degree of certainty that an investor can handle in regard to a positive change in the value of his assets.

    • B. 

      The degree of uncertainty that an investor can handle in regard to a negative change in the value of his portfolio.

    • C. 

      The degree of tolerance to changes in life

  • 19. 
    State one purpose of diversification?
    • A. 

      To smooth out systematic risk so that the positive performance of some investments will neutralise the negative ones.

    • B. 

      To get better return always.

    • C. 

      To ride the tide.

    • D. 

      To smooth out unsystematic risk so that the positive performance of some investments will neutralise the negative ones.

  • 20. 
    Based on the course material an investor's risk tolerance varies according to?
    • A. 

      Age

    • B. 

      Financial goals

    • C. 

      Income requirements

    • D. 

      Family ties