Our team has conducted extensive research to compile a set of Ethical Investment and Financial Services MCQs. We encourage you to test your Ethical Investment and Financial Services knowledge by answering these 40+ multiple-choice questions provided below.
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A. Fiduciary
B. Depositary
C. Trustworthy
D. Fictitious
A. Fiduciary
B. Depositary
C. Trustworthy
D. Fictitious
A. Nonpublic
B. Confidential
C. Exclusive
D. Pandemic
A. True
B. False
A. True
B. False
A. Nonpublic
B. Confidential
C. Exclusive
D. Pandemic
A. True
B. False
A. Tippee
B. Temporary insider
C. Design patent
D. Intellectual property
A. Corporate nondisclosure
B. Preserving fairness and honoring trust
C. Participating in insider trading
D. Information related to legal liability
A. Temporary insider
B. Corporate insider
C. Financier
D. Fiduciary
A. Privileged
B. Corporate
C. Ethical and honest
D. Immoral and unfair
A. An independent state government agency responsible for prosecuting investors
B. An independent federal government agency responsible for protecting investors
C. An independent federal government agency responsible for prosecuting bankers
D. An independent state government agency responsible for protecting bankers
A. Temporary insider
B. Insider trading
C. Corporate insider
D. Informed investor
A. Both promote the inherent goodness of bankers.
B. Both have a significant effect on the market value of corporate securities.
C. Both have trust in banks and in the financial markets.
D. Both provide banks with extra capital.
A. Financial market
B. Corporation
C. Tippee
D. Wall Street
A. Corporate insider
B. Insider trading
C. Material information
D. Nonpublic information
A. Unfair
B. Trader
C. Tippee
D. Fraud
A. Corporate insider
B. Temporary insiders
C. Nonpublic information
D. Insider trading
A. Both have roles in insider trading.
B. Both prioritize concern for social interests over wealth.
C. Both have a fiduciary obligation to the corporation.
D. Both sit on the board of directors.
A. He sold the stock at a high rate that profited Pillsbury under the misappropriation theory.
B. He negotiated with Grand Metropolitan using the classical theory for insider trading.
C. He purchased large sums of stocks using the classical theory on insider trading.
D. He breached a duty of loyalty to the source of the information under the misappropriation theory.
A. Crystal clear
B. Still ambiguous
C. Immoral
D. Illegal
A. Because Texas Gulf Sulphur remained the world’s leading sulphur producer
B. Because Texas Gulf Sulphur was drilling on Kidd Creek Mine
C. Because an insider purchased investments that were not made public
D. Because Texas Gulf Sulphur conducted aerial geophysical surveys over the Canadian Shield
A. Robert Stewart
B. Kendle Perella
C. Richard Cunniffe
D. Sean Stewart
A. It allows the avoidance of the banks’ Treasury Group.
B. It is the key benchmark to set borrowing rates between banks.
C. It allows borrowing analysis based on reports.
D. It allows banks to set interest rates to profit in their favor.
A. Submit higher LIBOR rates that benefit banks’ trading positions, and engage in increasing LIBOR submissions in response to negative media comments about the bank.
B. Submit lower LIBOR rates that benefit their own trading positions, and engage in increasing LIBOR submissions in response to positive media comments about the bank.
C. Submit higher or lower LIBOR rates that benefit their own trading positions, and engage in lowering its LIBOR submissions in response to negative media comments about the bank.
D. Submit higher LIBOR rates that benefit the customers’ positions, and engage in lowering its LIBOR submissions in response to positive media comments about the bank.
A. To regulate investments and submit market rates
B. To keep investment banks from sharing vital information
C. To allow insider trading to be legal
D. To keep investment banks from deceiving clients for profit
A. Equity shares and acquisitions
B. The credit default swap and collateralized debt obligations
C. Merger and acquisitions
D. Investment transactions and equity shares
A. They were showing new employees how to open accounts.
B. Their managers told them to open the accounts.
C. They felt pressured to meet sales goals.
D. They were looking for bonus money.
A. The managers told the monitors the practices were not a part of their business.
B. The auditors were not informed of the audit.
C. Branch managers would not allow access to the information.
D. Bank branches were given 24-hour notice before internal monitors arrived.
A. Demoted
B. Promoted
C. Terminated
D. Transferred
A. Bankers were opening unauthorized accounts.
B. Salaries and compensation needed to be determined.
C. Company profits went down.
D. Employee morale was fluctuating.
A. The CEO apologized.
B. The bank eliminated all banking fees.
C. The bank stopped their cross-selling strategy.
D. The bank refunded customers.
A. Sean Stewart received some kind of personal benefit.
B. Robert Stewart was innocent of the charges against him.
C. There was no wrongdoing in sharing information with family.
D. Richard Cunniffe was not involved in sharing information with others.
A. Bottom-up
B. Top-down
C. Upside-down
D. Side-to-side
A. Directly related to the beta of the stock
B. It is always the minimum-variance portfolio on the efficient frontier.
C. Zero alphas
D. All securities' returns must lie on the security market line
E. Along the security market line
A. Closed-end
B. Index
C. Open-end
D. Hedge
A. An abnormal return
B. Relative strength analysis
C. Abnormal return
D. Unsystematic
A. I, II, and III
B. (P0-P1)/ margin*P0
C. Market liquidity decreased
D. Archipelago; Instinet
A. More; European-
B. Less; European-
C. Less; Canadian-
D. More; Canadian-
A. Buy the underlying asset at the exercise price on or before the expiration date
B. Buy the underlying asset at the exercise price only at the expiration date
C. Sell the underlying asset at the exercise price on or before the expiration date
D. Sell the underlying asset at the exercise price only at the expiration date
A. A
B. B
C. C
D. D