31. Which of the following is an example of an initial public offering (IPO)?
a) A company issuing bonds to raise capital
b) An existing shareholder selling their stock on the secondary market
c) A company listing its shares on a stock exchange for the first time
d) A company repurchasing its own shares
32. Capital market instruments are typically backed by:
a) Collateralized assets
b) Government guarantees
c) Insurance policies
d) Market speculation
33. Which of the following is a benefit of investing in capital market instruments?
a) High liquidity
b) Guaranteed returns
c) Limited risk exposure
d) Lower taxes
34. Which of the following is an example of a credit derivative?
a) Corporate bond
b) Mortgage-backed security
c) Collateralized debt obligation (CDO)
d) Treasury bill
35. Which of the following is an example of a capital market instrument that represents ownership in a business?
a) Treasury bond
b) Corporate bond
c) Common stock
d) Preferred stock
