1. Which one of the following has the highest level of default risk?

T-bill

Series I bond

U.S. Treasury bond

Series EE bond

municipal bond

2.

Which one of the following do Series I savings bonds offer?

interest for an unlimited period of time

immediate redemption with no penalty

monthly interest compounding

monthly interest payments

guaranteed real rate of return

3. Which one of the following is a government agency?

Freddie Mac

GNMA

FNMA

Fannie Mae

FHLMC

4. Borrowers must pay which one of the following if they are to pay off their home mortgage?

remaining principal balance plus any accrued interest

all remaining payments in full

present value of the remaining principal balance

present value of all future payments discounted at the current market rate

remaining principal balance plus one year's interest