1. If you hold a bond, you could have taxable income from this bond even though you received no cash flows from the bond.

True

False

2. Munis have an active secondary market.

True

False

3. Rule 144A increased the liquidity of the secondary market for registered securities.

True

False

4. In 2008, FNMA and GNMA were placed into conservatorship.

True

False

5. Hybrid ARMs are suitable for borrowers who do not plan on staying in their residence for more than 5 years.

True

False