1. Which of these classes of securities generally has the highest liquidity?
   1. Long term debt
   2. Equity
   3. Money market securities
   4. Derivatives
2. REITs invest in:
   1. Real Estate
   2. IPOs
   3. Distressed debt
   4. Derivatives
3. If you were going to build an investment portfolio of just two assets the best choices would be:
   1. US government debt and Microsoft common stock
   2. US government debt and an S&P500 index fund
   3. Microsoft bonds and Microsoft common stock
   4. Microsoft bonds and an S&P500 index fund
4. Inflation reduces the _______ of your investments.
   1. Risk premium
   2. Nominal return
   3. Certainty equivalent
   4. Real return
5. Which of the following would be the best example of a primary market?
   1. A flea market
   2. A used car lot
   3. A shoe store
   4. The classified section of the newspaper