26. What is a “yield curve”?
a) A graph showing the relationship between the yield on bonds and their maturity
b) A graph showing the relationship between the stock price and trading volume
c) A graph showing the relationship between a company’s revenue and expenses
d) A graph showing the relationship between the market capitalization of companies
27. What is an “offshore investment”?
a) An investment made in another country’s capital market
b) An investment made by a company using its internal funds
c) An investment made in government bonds
d) An investment made in a company’s stock
28. What does the term “market capitalization weighted” mean?
a) A method of calculating an index where the weight of each stock is proportional to its market capitalization
b) A method of calculating an index where the weight of each stock is equal
c) A method of calculating an index where the weight of each stock is based on its dividend yield
d) A method of calculating an index where the weight of each stock is based on its trading volume
29. What is a “real estate investment trust” (REIT)?
a) A mutual fund that invests in real estate properties
b) A government agency responsible for regulating real estate transactions
c) A type of bond issued by real estate companies
d) A company that owns and operates income-generating real estate properties
30. What is a “market maker spread”?
a) The difference between the buying and selling prices of a market maker
b) The difference between the highest and lowest bid prices in the market
c) The difference between the highest and lowest selling prices in the market
d) The difference between the buying and selling prices of a security provided by a market maker
