1. Stocks/Equities and Bonds/Debt

2. If interest rates go up, bond prices 1.Go down 2.Go Up 3.Stay the same 4.Are not influenced

3. Inflation is 5 percent. You expect inflation to decrease to 2 percent. Bond prices should 1.Increase 2.Decrease 3.Stay the same

4. Interest rates or the return of an IBM corporate bond equals 5 percent annually. You expect investors to demand 7 percent on this bond in the future. The bond price should 1.Increase 2.Decrease 3.Stay the same

5. If you own stocks you are a ___________ of a company and if you own bonds you are a _________ 1.Cheerleader, Owner 2.Lender, Investor 3.Lender, Owner 4.Owner, Lender

6. While some debate this point, over the long term ____________ should perform better than __________ because ___________ are riskier than ____________ 1.Bonds, stocks, bonds, stocks 2.Bonds, stocks, stocks, bonds 3.Stocks, bonds, stocks, bonds 4.Stocks, bonds, bonds, stocks

7. ___________ is/are more volatile than ___________ 1.Ownership, stocks 2.Bonds, lending 3.Bonds, stocks 4.Stocks, bonds