QUESTION 1

If you hold a bond, you could have taxable income from this bond even though you received no cash flows from the bond.

True

False

QUESTION 2

Munis have an active secondary market.

True

False

QUESTION 3

Rule 144A increased the liquidity of the secondary market for registered securities.

True

False

QUESTION 4

In 2008, FNMA and GNMA were placed into conservatorship.

True

False

QUESTION 5

Hybrid ARMs are suitable for borrowers who do not plan on staying in their residence for more than 5 years.

True

False