1. Jon works at National Bank of the United States. He is working on obtaining a loan for the bank so that they can start a new mortgage lending program. The _______ created the entity that provides these types of loans to banks.

A. Securities Exchange Act of 1934

B. Securities Act of 1933

C. Federal Reserve Act of 1913

2. Aleksey purchased preferred stock in Microsoft after he graduated from graduate school. At the time, he had no interest in voicing his opinions to the company. Now that he has years of experience as an executive, he wants to help ensure that Microsoft continues to operate successfully. One way he can share his opinion with the company is to trade in his current preferred stock for common stock, which will give him voting rights. Aleksey can make this trade because he owns _____________.

A. convertible securities

B. bonds

C. mutual funds

3. Daphne works for the U.S. Treasury and has a lot of knowledge about the bond market. She decides to purchase 30-year treasury bonds to gift to her children.

Refer to Scenario 10.1. Daphne is teaching her children, who are in their teens, about saving and investing. She encourages them to use the earning from the bonds ___________, which they receive yearly, to build up their personal savings or consider other low-risk investments, like mutual funds.

A. coupon rate

B. par value

C. capital gains