16. Which of the following is an example of a primary market?
a) New York Stock Exchange
b) Nasdaq
c) London Stock Exchange
d) Initial public offering (IPO)
17. Real estate investment trusts (REITs) are an example of a capital market instrument that specializes in investing in:
a) Stocks
b) Bonds
c) Real estate properties
d) Private equity
18. Bonds issued by the government are backed by:
a) Corporate assets
b) Stock market indices
c) Treasury reserves
d) Taxpayer funds
19. Which of the following is a characteristic of a derivative instrument?
a) Physical possession of an asset
b) Direct ownership of a company
c) Leverage to amplify gains/losses
d) Guaranteed fixed interest payments
20. Eurobonds provide investors with the advantage of:
a) No currency risk
b) Higher default risk
c) Guaranteed principal repayment
d) Lower interest rates
