1. If you are a borrower, which would you prefer to occur during the live of your loan?

(a) A level of inflation that is exactly as anticipated at the outset of the loan

(b) A level of inflation that is lower than that anticipated at the outset of the loan

(d) No Inflation at all

2. Which of the following business organizational form(s) is/are the easiest one(s) to raise capital?

(a) Both sole proprietorship and partnership

(b) Corporation

(c) Sole proprietorship

(d) Partnership

3. Financial markets in which equity and debt instruments with maturitiesgreater than one year are traded are called

(a) none of these

(b) money markets

(c) over the counter exchange

(d) capital markets