Investment Training - Part1 And 2

20 Questions | By Ebapensions | Last updated: Mar 20, 2022 | Total Attempts: 82

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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