1. The Stock Margin Rate--which refers to the proportion of a security's purchase cost that can be borrowed from a broker by a qualified investor--is regulated and set by which institution(s)? (single answer)

a) The stock exchanges (e.g., the New York Stock Exchange, NASDAQ, etc.)

b) The Securities and Exchange Comission

c) The Federal Reserve

2. Your Financial Planner calls you and tells you that you can annuitize (convert into periodic payments) your $500,000 savings account and earn 5% interest. She offers you the following terms:

Invest the $500,000 into an annuity for five years (60 months) at 5%. What will you be paid at the end of each month? (Single answer)

a) $9,435.62

b) $115,487.40

c) $9,623.95

d) $8,546.87

e) $8333.33