1. Open market operations describe the process used by central banks to buy and sell bonds to: a. Issue and repay government debt. b. Implement fiscal policy. c. Control the monetary base

2. If you purchase a bond in the secondary market, its most likely purchased from: a. Another investor in the bond. b. The bonds underwriter. c. The bonds issuer.

3. Settlement is the process where bonds are passed from a seller to a buyer. Although bonds can settle at different times, corporate bonds will most likely settle: a. By the trade date plus three days (T+3). b. On the trade date. c. On the trade date plus one.