1. Short-term financing transactions commonly occur in the: Select one: a. capital markets. b. money markets. c. secondary markets. d. primary markets.

2. Which one of these assists in shifting an individual's consumption forward in time? Select one: a. A bank line of credit b. A retirement savings plan c. A bank savings account d. A life insurance policy

3. Suria Inc. is a corporation from the United States exports computers to Malaysia invoiced in U.S. dollars. Its main competitor is located in Korea. Suria is subject to: Select one: a. transaction exposure. b. translation exposure. c. economic exposure. d. economic and transaction exposure.

4. Financial markets and intermediaries allow investors and businesses to reduce and reallocate risk. Select one: a. Partly true b. Not clear c. True d. False

5. A bond differs from a share of stock in that a bond: Select one: a. has a maturity date. b. has more risk. c. has guaranteed returns. d. represents a claim on the firm.