1) Jayden is a school teacher nearing retirement. He has a moderate risk tolerance and plans to invest his retirement money in order to obtain profitable returns. He plans to use the money for his retirement and medical expenses.

Which of the following investment options will best suit Jayden?

• a.) Jayden should invest his savings to buy collectibles, which can be sold at a later date for a larger sum of money.
• b.) Jayden should invest his savings in treasury bonds because they ensure a decent rate of interest with minimal risk.
• c.) Jayden should invest his savings to buy a house, which he can sell and obtain a large profit.
• d.) Jayden should invest his savings in stocks because they ensure very high returns with minimal risk.

2) Which of the following statements is true of a limit order that is used by investors while purchasing or selling stocks?

• a.) If a limit order is placed, the brokerage firm buys stocks at or below a certain price as per the investor's direction.
• b.) If a limit order is placed, the brokerage firm immediately buys stocks at the current market price.
• c.) If a limit order is placed, the brokerage firm defers all transactions until the following business day.
• d.) If a limit order is placed, the brokerage firm blocks an investor's transactions until further notice.

3) Ramon wants to invest in real estate, but he cannot afford to buy a house on his own. He decides to use a real estate investment trust (REIT) instead.

Which of the following is true for Ramon's situation?

• a.) He and the other unit holders will be the landlords for the properties owned by the REIT.
• b.) He will own shares only in residential properties, not commercial properties.
• c.) He will receive dividends from the REIT.
• d.) He will have to take on debt for the properties owned through the REIT.