1. Because it is the common denominator that we use to compare products and decide which ones we will buy, money functions as a(n):

a. commercial tool.

b. store of value.

c. measure of value.

d. medium of exchange.

e. accepted resource.

2.

Your grandmother left you $10,000 in her will with the specific request that you use this money for the down payment on a house. Since you're still in college, you know that buying a house is a long way off. When considering where to invest this money, the factor that is most impacting your investment decision is:

a. your investment horizon.

b. investment diversification.

c. asset allocation goals.

d. your liquidity needs.

e. your risk tolerance.

3. Which of the following would most likely be classified as a growthinvestment?

a. Certificate of deposit

b. Treasury notes

c. Mid-cap stocks

d. Municipal bonds

e. Savings account

4.

In order to reach goals of high dollar returns on your investments, what must you generally give up?

a. Risk

b. Liquidity

c. Diversification

d. Safety

e. Speculation