After buying 100 shares of common stock in the It's All Good Corporation for $20 per share, Popeye later sold the same shares for $25 per share. Popeye's capital gain on the total transaction is:

1. $5
2. $50
3. $500
4. $2,500

Regis and Kelly plan to invest in corporate securities. While Regis plans to retire next year on his 65^th birthday, Kelly is celebrating her first job after college and her 22^nd birthday. Which of the two investors would be well advised to choose a more conservative investment strategy?

1. Regis
2. Kelly
3. A conservative investment strategy is always the best strategy.
4. It depends on where they want to invest in stocks or bonds.

The ABC Corporation issues a $1,000 bond, with an interest rate of 10%, and a maturity date of 2015. This creates a liability for the ABC Corporation to pay the bondholder:

1. $100 interest per year and $1000 in the year 2015
2. 10% of the selling price of the bond.
3. An interest payment equal to the dividend payment distributed to the common stockholders.
4. $1,000 annually until the year 2015

After Bill and Jillian deposited nearly $30,000 in a savings account at Farmers National Bank, the bank failed and filed for bankruptcy. Because the Farmers National Bank was an FDIC member bank, Bill and Jillian's savings:

1. Should be protected because their account is fully insured by the FDIC.
2. Can recover up to $20,000, but they will probably lose the rest since their deposits exceed the maximum coverage offed by the FDIC.
3. Will lose their savings because the FDIC only insures business deposits.
4. Will be eligible to recover 80 percent of the value of their deposit, less a $2,500 deductible.