What is a corporate bond?
a-a bond issued by a local government but sold by a corporation
b-a bond issued by a corporation as a way to borrow money
c-a high-risk investment in the proceeds of a corporation
d-another name for corporate stock

what is the securities and exchange commission?
a-an independent agency that advises the government about financial markets
b-a government agency that sells treasury bonds and other u. s. financial obligations
c-a government agency that regulates financial markets and investment companies
d-a privately owned investment corporation that sells bonds and other investments

why would investors buy a junk bond?
a-they want to invest in a particular company although it may not pay off
b-they have so much money that they do not care whether the bond will pay off
c-junk bonds are sold by more interesting companies then are regular bonds
d-junk bonds pay a potentially higher level of interest then other bonds

what is the difference between a primary market and a secondary market?
a-a primary market is financial assets that can be redeemed only by the original investor; a secondary markets assets can be resold
b-a primary market is paid first if a company is in trouble; a secondary market gets what is left
c-a primary market is redeem by a company's assets; a secondary market is redeemed by what is owed to the company
d-a primary market is money lent for less then a year; a secondary market is money lent for a longer time

how does the risk involved in a money market mutual fund with the risk of a certificate of deposit (cd)?
a-the risk of the money market mutual fund is less then that of the cd
b-the risk of the money market mutual fund is slightly greater then that of the cd
c-the risk of the money market mutual fund is much greater then that of the cd
d-the risk of both is about the same