46. Capital market instruments are typically issued to raise funds for:
a) Government operations
b) Consumer loans
c) Business investments
d) Short-term cash needs
47. Which of the following is an example of a capital market instrument that provides long-term financing for a corporation?
a) Treasury bill
b) Commercial paper
c) Corporate bond
d) Preferred stock
48. Which of the following is an example of a credit rating agency?
a) Federal Reserve
b) Securities and Exchange Commission (SEC)
c) Standard & Poor’s
d) International Monetary Fund (IMF)
49. A capital market instrument that increases in value when interest rates decrease is called a(n):
a) Inverse bond
b) Floating-rate note
c) Zero-coupon bond
d) Mortgage-backed security
50. Which of the following is an example of a capital market instrument that can be traded on an exchange?
a) Credit default swap
b) Collateralized debt obligation
c) Treasury bill
d) Real estate investment trust (REIT)
