1. All the following are characteristics of bonds except:

		a) Fixed maturity
		b) Fixed income (interest or coupon)
		c) Dividends
		d) Principal/Face Amount

2. Alissica owns 100 shares of JBL Mutual Fund. In December she received a check for $50, payment of ordinary income dividend distributions and capital gains distributions. Alissica also noticed in her daily newspaper listings that JBL Mutual Fund is now worth $2 per share more than what she purchased it for at the beginning of the year. How much will Alissica' s holdings in JBL Mutual Fund add to her taxable income for the year; assuming she decides NOT to sell the fund this year?

a) $52.00

b) $48.50

c) $0.00

d) $50.00

3. Before investing, you should:

a) Have sufficient savings for emergencies and adequate insurance coverage.

b) Establish Investment Goals & identify your sources of Investment Capital

c) Identify what Investment Returns are possible & the types of returns you get

d) All of the above

4. The key differences between Mutual Funds and Exchange Traded Funds are that: Traditional MFs can only be bought and sold once daily, after the market's close; whereas ETFs trade throughout the day like stocks. Another takeaway is that MFs are actively managed; whereas ETFs are passively managed.

True

False

5. A bond has a $1,000 face value, pays $95 annual interest, and is currently quoted at $1,302.50. What is the coupon rate?

		a) 8.500%.
		b) 9.500%.
		c) 13.025%.
		d) can't tell from the information given.