1. Which one of the following has the highest level of default risk?
T-bill
Series I bond
U.S. Treasury bond
Series EE bond
municipal bond
2. Which one of the following do Series I savings bonds offer?
interest for an unlimited period of time
immediate redemption with no penalty
monthly interest compounding
monthly interest payments
guaranteed real rate of return
3. Which one of the following is a government agency?
Freddie Mac
GNMA
FNMA
Fannie Mae
FHLMC
4. Borrowers must pay which one of the following if they are to pay off their home mortgage?
remaining principal balance plus any accrued interest
all remaining payments in full
present value of the remaining principal balance
present value of all future payments discounted at the current market rate
remaining principal balance plus one year's interest