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.
- 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
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