Preview Questions Investment Banker | Role Specific Skill

Question 1: In BFSI, what is the most effective way to build trust and credibility with new institutional clients?

Which action should you take?

Choose only one option

Prioritize transactional dealings over long-term planning

Provide large upfront bonuses or incentives

Offer discounts on services for initial engagements

Deliver value through consistent, informed insights and transparency

Question 2: Which financial statement is primarily used to build the base of a financial model?

Which action should you take?

Choose only one option

Balance Sheet

Statement of Retained Earnings

Cash Flow Statement

Income Statement

Question 3: In a financial model, how would you account for a non-recurring item such as a one-time gain?

Which action should you take?

Choose only one option

Exclude it from the forecast as it does not affect operations

Add it to the total value of the firm

Include it as a recurring item

Adjust the operating income but exclude it from the cash flow

Question 4: In a financial model, how would you project working capital?

Which action should you take?

Choose only one option

By estimating the company's future growth

By using industry benchmarks

By assuming no change in working capital

By analyzing historical changes in working capital

Question 5: What is the most common reason an acquirer would pursue an "asset sale" versus a stock sale in an M&A deal?

Which action should you take?

Choose only one option

To minimize tax burdens on the target's shareholders

To ensure full control over the target's intellectual property

To avoid inheriting unwanted liabilities

To increase the post-merger company's liquidity

Question 6: In market forecasting, what would be the impact of a central bank decision to raise interest rates on the bond market?

Which action should you take?

Choose only one option

Decrease inflation expectations

Increase liquidity in the market

Increase bond yields

Increase in bond prices