1. The value of fiat money:

a) comes from its intrinsic value.

b) is worth more as a commodity than its value as money.

c) comes from government decree.

d) means that it is more desirable than currency.

2. Mutual funds have:

a) been created for very wealthy individuals with alot of money to invest.

b) increased the risks associated with constructing a portfolio.

c) reduced the costs associated with gathering information on stocks and bonds.

d) increased the transactions costs associated with participating in financial markets.

3. An over the counter market is:

a) made up of dealers who only sell government bonds.

b) an example of a centralized market.

c) made up of dealer who buy and sell only for their own accounts.

d) made up of dealers who buy and sell for their customers and for their own accounts.