. Arbitrage involves profiting from price differences:

a) Between different securities within the same market

b) Between the spot and futures prices of a commodity

c) Between two different financial markets

d) Between the bid and ask prices of a stock

38. Which of the following is an example of an open-end investment company?

a) Mutual fund

b) Exchange-traded fund (ETF)

c) Closed-end fund

d) Real estate investment trust (REIT)

39. The USA PATRIOT Act requires financial institutions to:

a) Report suspicious transactions and prevent money laundering

b) Provide financial assistance to government agencies

c) Limit customer access to their own funds

d) Establish minimum investment requirements for clients

40. The bid price represents:

a) The price at which a buyer is willing to purchase a security

b) The price at which a seller is willing to sell a security

c) The average price of a security over a specific time period

d) The price at which a security was last traded on the market