What is the significance of basis points (bps) in finance?

a) They represent the minimum investment required for certain securities

b) They indicate the number of stocks outstanding for a particular company

c) They measure changes in interest rates and yields

d) They represent the annual dividend payment per share

47. The role of a trustee in a bond offering is to:

a) Determine the interest rate of the bond

b) Represent the interests of bondholders

c) Manage the daily operations of the issuer

d) Execute trades on behalf of bondholders

48. The process of purchasing securities with borrowed funds and using the securities as collateral is called:

a) Short selling

b) Margin trading

c) Options trading

d) Asset allocation

49. In options trading, the party who sells the option is referred to as the:

a) Writer

b) Holder

c) Underwriter

d) Dealer

50. Which of the following investments is generally considered to have the lowest risk?

a) Small-cap stocks

b) Corporate bonds

c) Options contracts

d) Cryptocurrencies

51. The term "volatility" refers to:

a) The risk associated with a particular investment

b) The speed at which a security's price changes

c) The likelihood of a market downturn

d) The historical performance of a mutual fund