Python Functions Part - 2 | 8/100 Days of Python Algo trading

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Day 8: Python Functions Part – 2

1. What is a nested function in Python?

A) A function that can only be called inside another function

B) A function defined within another function

C) A function that returns another function

D) A recursive function

2. Why are Python functions considered first-class citizens?

A) They can only be executed in the first class of a program

B) They can be passed as arguments, returned from other functions, and assigned to variables

C) They have priority execution over other types

D) They are always executed first

3. What is a primary benefit of using functions in programming?

A) Increased processing time

B) Reduced memory usage

C) Enhanced code reusability and readability

D) Simplified error handling

4. How are lambda functions defined in Python?

A) Using the def keyword and specifying a name

B) Using the lambda keyword and no name

C) With the lambda keyword and a mandatory return statement

D) Using a special class for anonymous functions

5. What is the main difference between a lambda function and a regular function in Python?

A) Lambda functions can execute faster than regular functions

B) Lambda functions are defined without a name and can only have one expression

C) Regular functions cannot return values, unlike lambda functions

D) Lambda functions do not support parameters, while regular functions do

6. How can you use a lambda function with the map() function?

A) map(lambda x: x*2, [1, 2, 3]) to double the elements of the list

B) lambda map: [1, 2, 3] to create a mapping of values

C) map(lambda x: x==2, [1, 2, 3]) to find elements equal to 2

D) lambda x: map(x*2) to double the elements

7. Which function combines well with a lambda to filter items in a list?

A) reduce()

B) filter(lambda x: x > 5, [3, 6, 9, 2]) to get elements greater than 5

C) map()

D) append()

8. What does the reduce() function do when used with a lambda?

A) It applies a lambda function to all items in a list sequentially, accumulating a result

B) It reduces the memory usage of the list

C) It reduces the list to its smallest element

D) It applies a lambda function independently to each item

9. In what scenario might you use a nested function in an algorithmic trading system?

A) To simplify the logging of errors only

B) To define utility functions within a function that handles real-time trade data

C) To create a separate thread of execution

D) Nested functions are not usable in algorithmic trading

10. How can you use a function as a return value in Python?

A) By calling return function_name()

B) By defining one function inside another and returning it

C) By using the return keyword outside of any function

D) It is not possible to return functions in Python

11. What is a practical use of first-class functions in a trading algorithm?

A) To store functions in data structures for dynamic invocation

B) To increase the speed of calculations

C) To avoid using loops in code

D) To directly manipulate market prices

12. Which Python feature allows lambda functions to be used effectively with map()?

A) The ability to execute without naming them

B) The restriction to only one line of code

C) Their ability to return multiple values

D) The automatic handling of exceptions

13. Why would you use a lambda function instead of a regular function for simple data transformations?

A) For complex multi-line operations

B) When the transformation can be expressed in a single expression

C) Lambda functions can perform operations regular functions cannot

D) It is a requirement in Python to use lambdas for transformations

14. What does passing a function as an argument to another function allow you to do?

A) Decrease the number of lines in your code significantly

B) Simplify the syntax of the program

C) Create more complex algorithms without using additional variables

D) Modify the behavior of the called function dynamically

15. What are the advantages of using first-class functions for an event-driven trading system?

A) They allow for static event handling that does not change over time

B) They enable dynamic handling of events based on system state or market conditions

C) They remove the need for handling events altogether

D) They allow events to be ignored safely

16. How does the scope of nested functions impact variable access in a trading algorithm?

A) Variables in the outer function cannot be accessed by the nested function

B) Nested functions have their own local scope but can access the enclosing function's scope

C) Nested functions modify global variables directly

D) There is no impact; all functions share the same scope

17. What distinguishes the filter() function when used with a lambda in data processing?

A) It processes each item and collects it into a new list without any conditions

B) It eliminates all elements that do not meet the condition specified in the lambda

C) It changes elements in-place based on the lambda condition

D) It increases the size of the iterable

18. When would you prefer a normal function over a lambda in a trading algorithm?

A) When the function is simple and used only once

B) When the function is complex and requires multiple statements

C) When performance is not a concern

D) When the function must handle multiple types of data simultaneously

19. How can using first-class functions lead to more modular code in financial software?

A) By coupling functions closely with data

B) By enabling functions to be passed around and reused in different parts of the application

C) By forcing all functions to use the same interface

D) By using only anonymous functions throughout the application

20. What benefit does the reduce() function provide when analyzing financial data streams?

A) It simplifies data to a single value, summarizing data streams efficiently

B) It increases the data volume for more detailed analysis

C) It visualizes data in real-time

D) It separates data into multiple streams for parallel processing