1.If you purchase $28,000 of stock by paying $21,000 in cash and borrowing the remaining $7,000, how much would the total assets be if you constructed a balance sheet to reflect this transaction?

A. $21,000

B. $28,000

C. $9,000

D. $12,000

2.Selling a stock you don't own is also known as a/an

A. hypothecation.

B. short sale.

C. margin sale.

D. initial margin.

3.Which of the following choices best describes an investment company?

A. A company that only invests in hedge funds

B. A fixed-income security

C. A company that pools funds from individual investors

D. A closed-end fund that invests in commodities