26. An investor who wants exposure to a specific market index, such as the S&P 500, can invest in:
a) Treasury bills
b) Preferred stock
c) Exchange-traded funds (ETFs)
d) Commercial paper
27. Which of the following is an example of an international capital market instrument?
a) Treasury bill
b) Corporate bond
c) Eurobond
d) Commercial paper
28. A bond that has a fixed interest rate and an adjustable price is called a:
a) Convertible bond
b) Zero-coupon bond
c) Floating-rate bond
d) Treasury bond
29. Commercial paper typically has a maturity period of:
a) 1 month or less
b) 1-5 years
c) 5-10 years
d) More than 10 years
30. Which of the following is a characteristic of a well-functioning capital market?
a) High volatility
b) Limited liquidity
c) Efficient price discovery
d) High operational costs
