1. As opposed to most other debt instruments, mortgage loans tend to A. charge lower interest rates B. be of larger denomination C. pay interest less frequently D. be repaid over the life of the loan

2. Classical interest rate theory states that rising interest rates will A. increase the demand for money B. decrease the demand for money C. decrease investment expenditures D. increase the quantity of saving

3. If the yield on long-term securities is greater than the yield on comparable short-term securities,the yield curve will be A. positively sloped B. negatively sloped C. in the negative quadrant D. undefined

4. The regulatory agency that is responsible for all organized exchanges and financial markets A. IC B. SEC C. BSP D. PDIC

5. Which of the following is not a government agency that regulates financial institutions? A. Insurance Commission B. Bangko Sentral ng Pilipinas C. Securities and Exchange Commission D. Bureau of Internal Revenue