36. Reverse repo agreements are commonly used in capital markets for:
a) Short-term borrowing
b) Long-term borrowing
c) Foreign exchange trading
d) Buying and selling stocks
37. Asset-backed securities are capital market instruments that are backed by:
a) Corporate assets
b) Stock market indices
c) Real estate properties
d) Government bonds
38. Rights issues are capital market instruments that allow existing shareholders to:
a) Receive dividend payments
b) Sell their shares to other investors
c) Purchase additional shares at a discounted price
d) Exchange their shares for a different security
39. Which of the following is an example of a capital market instrument that gives holders the right to purchase shares at a specific price?
a) Treasury bill
b) Mortgage-backed security
c) Call option
d) Convertible bond
40. Derivative instruments are often used by investors for:
a) Long-term investment strategies
b) Hedging against market risk
c) Generating steady income
d) Avoiding taxes
