SUMMER SCHOOL GUIDEBOOK MCQ ANSWERS
WHAT IS 'HEDGING'?
An investment intended to beat the market.
An investment intended to offset environmental issues.
An investment intended to offset potential losses or gains that may be occurred by another investment.
An investment focused on technology companies.
WHAT IS A CONTIGENT CONVERTIBLE BOND?
A bond that can have the date of maturity changed.
A bond that cannot be sold to another investor.
A bond where coupon payments can be suspended and converted into equity if the issuer hits trouble.
A bond used to fund the lottery, it is also known as the chance bond.
WHAT IS A DEBENTURE?
A strategy used to decrease the cost of an IPO.
A debt instrument that is not backed by any collateral and usually has a term greater than 10 years.
An investing strategy used by hedge fund managers.
A contractual clause allowing a third party to claim money under the contract.
WHAT IS A 'GREEN BOND'?
An income instrument that was issued to specifically raise money for climate and environmental projects.
Where an investor buys equity in a company that has a focus on ESG.
An income instrument that allows the borrower to write off a % of the loan if they are carbon neutral.
An income instrument that allows the lender to increase the interest rate if the borrower is not climate friendly.
WHY MIGHT BANKS PARTICIPATE IN SYNDICATED LENDING?
To spread the credit risk.
To allow the borrower to network with banking directors.
To allow the banks to finance a loan using fintech.
To fund charities and project finance.
WHAT DOES IT MEAN IF SHARES ARE TRADING AT A PREMIUM POST IPO?
The shares are above the issue price.
The shares are only available to those in a specific country.
The shares are below the issue price.
The shares have an unusually high dividend.