1) Sandra opts to repay her student loans using the graduated repayment plan.

Which of the following is a feature of a graduated repayment plan?

A) Sandra's outstanding debt will be forgiven after 10 years.

B) Sandra's payments are fixed at an amount that ensures her loans are paid off within the next 10 years.

C) Sandra will pay a lower amount in the beginning, and this amount increases over time.

D) Sandra's payments are limited to 10% of her discretionary income.

2) Stella buys stock in a pharmaceutical company.

Which of the following is true in this case?

A) Stella and other shareholders are responsible for paying for any losses the firm may generate.

B) Stella is entitled to a proportional amount of the profits of the company.

C) Stella receives the interest on her investment in the company in a series of predefined payments.

D) Stella will receive guaranteed income in the form of dividends.

3) Debbie is deciding between renting and buying a house.

Which of the following is true if Debbie rents rather than buys a house?

A) Renting offers long-term stability.

B) She will not have to pay an application or security deposit.

C) The taxes paid on the house are tax deductible for her.

C) Debbie most likely will not be responsible for paying for repairs to the house herself.