41. What is a “run-off” in the capital market context?
a) The process of winding down a business or investment portfolio
b) The process of raising capital for a company
c) The process of merging two companies
d) The process of issuing new shares to the public
42. What does the term “leverage” refer to in the capital market?
a) The use of borrowed money to invest in securities
b) The ability of a security to generate high returns
c) The total value of all outstanding loans in the market
d) The risk associated with investing in a particular stock
43. What is a “swap” in the capital market?
a) An agreement between two parties to exchange future cash flows or assets
b) A short-term loan provided by banks to companies
c) The process of merging two companies
d) The process of issuing new shares to the public
44. What does the term “market risk” refer to in the capital market?
a) The risk associated with investing in a particular stock
b) The risk of the overall market declining in value
c) The risk of interest rate fluctuations
d) The risk of default by a bond issuer
45. What is a “stakeholder” in the capital market?
a) An individual or institution with an interest or involvement in a company or investment
b) A government agency responsible for regulating the capital market
c) An investment advisor who provides guidance on investment strategies
d) A regulatory body that oversees the functioning of the stock exchange
