1. The term of an investment can be described as either:
a. long or short, long-term meaning any duration longer than five years
b. long, intermediate, or short, intermediate being any duration longer than one year but shorter than five years
c. none of the above
d. intermediate or short, intermediate being any duration longer than one year
2. The principal differences between capital markets and money markets are that:
a. capital markets deal in long-term debt and equity securities, while money markets deal only in short-term debt
b. both markets deal in short-term debt securities; however, capital markets deal also in equity securities which have an indefinite term
c. money markets deal only in short-term government debt
d. money and capital markets deal in the same securities, the only difference is term