35. You have been offered an opportunity to buy shares of a diversified collection of securities. You will be investing in: b. bonds. mutual funds. common stocks. real estate. a. c. stock d. e. options. 36. issued by are senior, unsecured, unsubordinated debt securities an underwriting bank. Mutual funds b. Exchange traded notes Collateral debt d. a. Corporate Bonds Treasury bills 37. Which of the following is true of bonds? Bonds are liabilities of the issuer. obligations b. a. Individuals investing in bonds receive dividends. Bonds cannot be purchased or sold prior to maturity. Income from bonds varies every year. The principal invested in bonds is not returned at the time of maturity. 38. James purchased five bonds of face value of S1,000 that paid c. d. 5% annual interest rate. The total annual interest income of James is S175 S50 38. Megan invested in ten bonds of total face value of S1,000, issued by Zen Corporation. The bonds paid 10% semiannual interest till the maturity date. Which of the following is the value of interest earned in the first installment on a single bond? S100 S50 . S250 d. a. c. S100 e. S500 S50 b. d. a. c. $90 S75 e. 40. Which of the following is a characteristic of organized securities exchanges? They facilitate in the trading of unlisted securities. Municipal bonds are primarily traded in organized Pink sheets are commonly used in these The NASDAQ is an example of an Trading in securities is carried a. b. exchanges. markets. d. c. organized exchange. out in a physical location. 41. Which of the following securities or investment acts regulates the sale of mutual fund shares? e. The Securities Act of 1933 b. The The Securities and Exchange Act of 1934 Investment Company Act of 1940 Sarbanes/Oxley Act of 2002 Protection Act of 1970 c. d. The The Securities and e. 42. A bull market is characterized by: b. economic slowdown. investor optimism. governmental d. a. stimulus. falling c. stock prices. investor pessimism. e. 43. A bear market condition is associated with: declining securities d. investor optimism. b. a. economic recovery. tight monetary policy. prices. tax rate. increased c