Question Number	Question
1	Although you have made no deposits or withdrawals from your emergency fund savings account at the bank, the account balance has risen during the past three years from $15,000 to $17,613.32. What has been the compound annual interest rate that the bank has been crediting to your account? 4.5% 5.0% 5.25% 5.5%
2	John Smith, one of your clients, has asked you about the wisdom of investing $25,000 of his funds in a certificate of deposit at his bank. In your advice to him, which of the following characteristics of typical small CDs should you point out? The availability of an active secondary market The option to redeem the CD prior to maturity, without penalty The protection provided by the Federal Deposit Insurance Corporation The requirement of a minimum investment of $100,000
3	Which of the following instruments is not traded in a money maket? Bankers acceptances Government Treasury Bills Long-term Bonds Repurchse Agreements
4	You deposit $5,000 in a one year CD that offers a 9.0% rate of return componeded daiy. What will the CD be worth at maturity? $5,470.81 $5,469.03 $5,76.00 $5,450.00
5	Which of the following are short-term financial instruments? A negotiable Certificate of Deposit A bankers accespance A U.S. Treasury bill All of the aboive

6	Which of the following instruments are traded ina capital market? U.S. government agency securities Negotiable bank CDs Repurchase agreements Commercial paper