1. If you buy $25M in credit protection through a CDS contract, how much would you pay in quarterly premiums until either the end of the contract or a credit event occurs if the CDS spread is 50 basis points?
   1. $25,000
   2. $31,250
   3. $ 125,000
   4. $6,250,000

2. Money market securities are sometimes referred to as cash equivalents because _________.
   1. They are safe and marketable
   2. They are illiquid
   3. They are high-risk
   4. They are low-denomination

3. The bid price of a Treasury bill is _________.
   1. The price at which the dealer in Treasury bills is willing to sell the bill
   2. The price at which the dealer in Treasury bills is willing to buy the bill
   3. Greater than the ask price of the Treasury bill expressed in dollar terms
   4. The price at which the investor can buy the Treasury bill