1. High-risk investment techniques include all of the following except:

a. selling short.

b. buying common stock for cash.

c. trading in stock options.

d. buying stock on margin.

e. trading in commodities.

2. Stock of a company that distributes the majority of its profits to its shareholders in the form of dividends is known as:

a. an income stock.

b. an ETF.

c. a growth stock.

d. a derivative.

e. a sector stock.

3.

The Federal Reserve uses _______ to regulate the nation's supply of money in order to maintain a healthy economy.

a. budgetary policy

b. taxation

c. fiscal policy

d. monetary policy

e. federal spending

4. Which of the following statements would be an example of a medium-term goal?

a. Pay off the mortgage on the house by 2030.

b. Save $2,000 over the next two years toward the purchase of a new car.

c. Pay off my credit card balance within the next 60 days.

d. Have all of my student loans paid off within 10 years of graduation.

e. Register for next semester's classes by the end of the month.