Investment Training - Part1 And 2
This quiz is to test your understanding of Part 1and 2 of the Investment Training held for EBA staff
- 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
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