56. Which of the following is an example of a long-term debt instrument?
a. Treasury bill
b. Commercial paper
c. Corporate bond
d. Certificate of deposit (CD)
57. The process of selling a security with a commitment to repurchase it at a later date is known as:
a. Short selling
b. Repurchase agreement (repo)
c. Margin trading
d. Options trading
58. What is the role of a market maker in securities trading?
a. Executing buy and sell orders on behalf of investors
b. Setting the price of a security in the market
c. Regulating the functioning of stock exchanges
d. Providing liquidity by buying and selling securities
59. Which of the following is an example of an equity market index?
a. Dow Jones Industrial Average (DJIA)
b. Consumer Price Index (CPI)
c. Gross Domestic Product (GDP)
d. Producer Price Index (PPI)
60. What is the purpose of a stop-loss order in securities trading?
a. To automatically sell a security if its price falls below a certain level
b. To request the purchase of a security at a specified price
c. To limit the amount of losses incurred in a trade
d. To place a temporary halt on trading activity
