1. What is the return of a stock that trades at $35, will pay a $0.75 dividend at the end of the year, and grows at a rate of 6%?

a. 8.14%

b. 8.53%

c. 8.97%

d. 9.53%

e. 10.01%

2. Why do you think Congress threatened to remove the Fed's independence during the financial crisis of 2007-2009?

a. The desire for removing the Fed's independence resulted from public outrage over the bailouts of large intermediaries.

b. Removing the Fed's independence helps to achieve the Fed's aim of confusing market participants about the stance of policy.

c. There is no deliberate strategy behind removing the Fed's independence.

d. Removing the Fed's independence is mandated by law.