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Multiple Choice
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1

Investment bankers are intermediaries between business firms and ___________.
A)banks
B)securities dealers
C)the investing public
D)none of the above
2

Leveraged buyouts rely on ________ to purchase a firm.
A)Debt
B)Equity
C)Cash
D)none of the above
3

The Gramm-Leach-Bliley Act repealed the _________________.
A)McFadden Act
B)Securities Act of 1933
C)The Federal Reserve Act
D)The Glass-Stegall Act
4

Which of the following pieces of legislation required that banks keep their commercial and investment functions separate?
A)McFadden Act
B)Gramm-Leach-Bliley Act
C)Glass-Steagall Act
D)none of the above
5

An investment banker may engage in buying and selling a new issue of securities in order to ensure a liquid market. This function is called ______________.
A)market making
B)advising
C)agency function
D)underwriting
6

_______________ of earnings may occur after a new stock issue is made.
A)Maximization
B)Dilution
C)Termination
D)Stabilization
7

How long does an investment banker usually try to stabilize the market after an initial public offering?
A)2-3 days
B)2-3 months
C)1 month
D)none of the above
8

A disadvantage of being a public company is:
A)the ability to have greater access to the capital markets
B)having the ability to engage in merger
C)disclosure of information to the SEC
D)all of the above are advantages
9

______________ is the most popular way of raising debt capital for most corporations.
A)Bank loans
B)Public debt issues
C)Private debt issues
D)none of the above
10

Which of the following are functions of an investment banker?
A)underwriter
B)market maker
C)advisor
D)all of the above





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