1) Which of the following assign ratings for corporate bonds in the United States? _______

A) The Securities and Exchange Commission

B) The Office of Debt Management

C) Private companies such as Moodys and Fitch

D) The issuing companies

2) If you deposit $1,000 in a savings account at an annual rate of 8%, how much will you have in the account at the end of three years? Assume compounding of annual interest and no withdrawals. _______

A) $1,166 B) $1,240 C) $1,260 D) $1,320

3) In the financial markets, a bond issuer is: _______.

A) the borrower

B) the lender

C) the lender or the borrower depending on the use of the funds

D) dependent on the rating agencys report

4) If you purchased a U.S. Treasury at a price of $105:08 with a par amount of $5,000, how much did you pay? _______

A) $5,000 B) $5,250 C) $4,762 D) $5,262

5) If a government's outlays exceed its revenues, the government is running a: _______.

A) deficit and is a net saver of funds

B) surplus and is a net borrower of funds

C) deficit and is a net borrower of funds

D) surplus and is a net saver of funds