3. MULTIPLE CHOICE QUESTIONS (1 point each) 4. c- d- 2. a- b- C- d- C- d- 1. a- b- Disability insurance Casualty insurance Life insurance. 3. a- b- An insurance policy that compensates its holder in case of cancer disease is Health insurance One of the key features of equity securities is Residual claim The higher the profits the lower the return Fixed income It's a tangible asset An example of a non depository institution is Commercial Bank Asset management Firms Credit Unions Savings and Loan Association 4. A municipal bond is a bond issued by a- The Federal government b- The state C- The corporation d- The non-profit foundation TRUE/ FALSE QUESTIONS (1 point each) 1. An example of a financial asset is 360 mall. T 5. Taking a short position on Oil Futures that currently trades at $30 is profitable when a- The oil price is $35 b- The oil price is $30 The oil price is $25 C- F 2. A NOW account is one type of a demand deposit. T, F Commercial banks are usually mutually owned by depositors T F Liquidity refers to how fast you can convert an asset into cash T F