Preview Questions Investment Banker | Role Specific Skill

Question 1: In a competitive intelligence research project, what is the most useful data to gather for an investment banker?

Which action should you take?

Choose only one option

Competitors' market share, pricing strategies, and financial performance

Competitors' growth strategies and product diversification

Competitors' future business plans and expansion strategies

Competitors' regulatory compliance history and risks

Question 2: How often must banks report their liquidity coverage ratio (LCR) under Basel III?

Which action should you take?

Choose only one option

Quarterly

Biannually

Annually

Monthly

Question 3: What is the first step in evaluating market risk for a financial product in the BFSI sector?

Which action should you take?

Choose only one option

Reviewing the competitive landscape of similar products

Assessing the impact of changes in interest rates

Analyzing the historical volatility and correlation with market indices

Calculating the potential return on investment under various scenarios

Question 4: What is a key reason why an acquirer might prefer an asset deal over a stock deal in an M&A transaction?

Which action should you take?

Choose only one option

To reduce the cost of financing the transaction

To selectively acquire assets while avoiding liabilities

To avoid paying taxes on gains from the transaction

To transfer shares and ownership in one transaction

Question 5: When considering the impact of risk on a merger or acquisition (M&A) deal, what is the primary factor to assess?

Which action should you take?

Choose only one option

The historical performance of the acquirer

The target company's debt levels

The post-merger market share

The target company's business risks and integration costs

Question 6: What does "Know Your Customer" (KYC) regulations require financial institutions to do?

Which action should you take?

Choose only one option

Report customer trades to regulators

Verify customer identity

Assess customer creditworthiness

Monitor stock trades