Question 1

Which of the following has the greatest risk?

Options :

A : a guaranteed corporate bond

B : a GNMA bond

C : a Series H bond

D : a treasury bill

Answer: A

Question 2

Bubba is buying a treasury bill. The discount he receives results in Bubba’s determination of:

Options :

A : face value

B : nominal yield

C : rate of return

D : yield to call

Answer: C

Question 3

Which of the following sources provides news of prospective municipal securities sales to underwriters?

Options :

A : the Blue List

B : the daily Bond Buyer

C : the SEC News Digest

D : The Wall Street Journal

Answer: B

Question 4

If the Federal Reserve wished to ease credit, which of the following steps would it take?

Options :

A : raise the discount rate

B : purchase securities in the open market

C : lower reserve requirements

D : both B and C

Answer: D

Question 5

Bubba Corporation has 3,500,000 shares of common stock outstanding and its tradingvolume in the few weeks has been as follows:Week 1 - 43,000Week 2 - 30,900Week 3 - 37,500Week 4 - 42,600Week 5 - 33,000 (the most recent week)If an affiliated person wanted to liquidate some of his holding of 100,000 shares pursuant toSEC Rule 144, how many shares could he sell?

Options :

A : 35,000

B : 36,000

C : 37,400

D : 38,500

Answer: B

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