1. What are the different types of cash management accounts? what and the pros and cons?

2. Indicate which bond in the following pairs of bonds is likely to bear the higher interest rate (yield) and state why. If there is no general reason for a difference indicate that they would be the same.

A. A corporate bond rated Aaa or a municipal bond rated Aaa

B. A municipal bond rated Baa or a municipal bond rated Aa

C. A general obligation bond issued by a city or a revenue bond issued by a city

D. A general obligation bond rated Aa issued by a city or a general obligation bond rated Aa issued by a county

E. A municipal bond (term) with maturity in five years or a municipal bond (term) with maturity in twenty years

3. A mutual fund has many economic functions. Which of the following is not one of the functions?

A. Allow the individual investor the opportunity to diversify

B. Afford a barrier between the individual investor and the abrupt changes of the marketplace

C. Provide professional expertise necessary to earn abnormal returns through successful analysis of securities

D. Achieve economies of scale in trading and transaction costs

E. Beat the market every year