11. Which of the following is an example of a money market instrument?
a) Corporate bond
b) Mortgage-backed security
c) Treasury bill
d) Common stock
12. A mutual fund is an example of a capital market instrument that:
a) Invests in a diversified portfolio of stocks, bonds, or other securities
b) Provides insurance coverage to investors
c) Offers short-term loans to businesses
d) Trades on a derivative exchange
13. Which of the following is a characteristic of a capital market instrument?
a) Very high liquidity
b) No market risk
c) Fixed returns
d) Possibility of unlimited gains
14. Which of the following is an example of an equity instrument?
a) Corporate bond
b) Mortgage-backed security
c) Preferred stock
d) Treasury bill
15. Commercial paper is typically issued by:
a) Governments
b) Central banks
c) Corporations
d) Individuals
