1.

Which investment vehicle carries the least risk? (3 points)

	Government bonds
	Large company stocks
	Small company stocks
	U.S. Treasury bills

2.

D'Andra is 50 years old and has had a retirement portfolio for 25 years. She has about 17 years to go before retirement. Which breakdown of investments would a financial advisor most likely suggest for D'Andra at this point in time? (3 points)

	0% high-risk; 20% medium-risk; 80% low-risk
	25% high-risk; 50% medium-risk; 25% low-risk
	55% high-risk; 30% medium-risk; 15% low-risk
	70% high-risk; 25% medium-risk; 5% low-risk

3.

Boyce invested an average of $450 per month since age 34 in various securities for his retirement savings. His investments averaged a 4% annual rate of return until he retired at age 63. Given the same monthly investment and rate of return, how much more would Boyce have in his retirement savings had he started investing at age 20? Assume monthly compounding. (4 points)

	$113,320.00
	$321,946.93
	$78,624.00
	$224,749.27

4.

A family from Colombia is visiting the United States. Their first stop is a bank, where the following exchange rate is posted: USD to COL = 1821.23. On this day, how many U.S. dollars will the family get for 2,000 of their Colombian pesos? Round to the nearest cent. (3 points)

	$1.10
	$3,821.23
	$178.77
	$1,821.23

5.

Lien-Hua is visiting relatives in China. She exchanges 250 U.S. dollars for the local currency, Chinese Yuan. If the exchange rate that day is USD to CNY = 6.48, how many Chinese Yuan does Lien-Hua receive? Round to the nearest hundredth. (3 points)

	1,620.00
	256.48
	385.80
	259.20

6.

Zebediah is an American traveling with a tour group in Eastern Europe. During a stop in Romania, he purchases a souvenir that is priced at 177 Romanian leu using his credit card. If the exchange rate that day is USD to RON = 2.89, which is the best estimate of the charge Zebediah will later find on his credit card statement? (3 points)

	$450
	$147
	$153
	$50