1.Which of the following is NOT one of the factors affecting risk tolerance?

A. Consumer confidence

B. The state the person lives in

C. Life-cycle effects

D. Education

2.When investors are worried about a possible "bear market," this is an example of

A. default risk.

B. interest-rate risk.

C. liquidity risk.

D.market risk.

3.The sacrifice of today's consumption for consumption at a later date is captured in the

A. liquidity premium.

B. inflation rate.

C. maturity risk premium.

D. real risk-free rate.