6. Which entity is responsible for regulating and overseeing capital markets in the United States?
a. Securities and Exchange Commission (SEC)
b. Federal Reserve System (Fed)
c. Financial Industry Regulatory Authority (FINRA)
d. Commodity Futures Trading Commission (CFTC)
7. What is the role of credit rating agencies in debt markets?
a. Determining the interest rates on loans and bonds
b. Assessing the creditworthiness of borrowers and issuers
c. Facilitating the trading of government securities
d. Regulating the issuance of corporate bonds
8. Which of the following is a characteristic of a money market instrument?
a. Long maturity period
b. High yield potential
c. Low risk of default
d. Tradable on stock exchanges
9. What is the purpose of a bond indenture?
a. Establishing the interest rate of a bond
b. Defining the rights and obligations of bondholders and issuers
c. Determining the maturity date of a bond
d. Assigning a credit rating to a bond
10. The process of bundling individual loans into a tradable security is called:
a. Securitization
b. Arbitrage
c. Hedging
d. Derivatization
