1. Municipal bonds are long-term debts issued by states and local governments. Municipal bonds typically offer lower interest payments than corporate bonds because municipal bonds:

a. Are typically shorter in duration than corporate bonds

b. Are federally insured whereas corporate bonds are not

c. Are more liquid than corporate bonds

d. Provide dividend reinvestment opportunities

e. Offer interest that is exempt from federal taxation

2. The following is a definition that describes a type of investment that has grown tremendously in recent years: "A diversified set of passively managed stocks, bonds or other securities that is most often structured to act like an index mutual fund but typically charges lower fees and is traded at varying prices throughout the trading day (like individual stocks)." Which of the following investments is being described?

a. Life cycle fund

b. Value fund

c. Exchange traded fund

d. Annuity fund

e. Target date fund

3. A living will:

a. Expresses in writing a person's desire to transfer assets to designated heirs

b. Is an oral statement of a person's financial wishes after death

c. Involves a court-appointed legal guardian

d. Summarizes who may live in a person's house after their death

e. States a person's desires with respect to potentially life-saving measures in the event of an accident or illness