Items 1 and 2 are based on the following facts:

Sandy Corporation is considering the following issuances:

  1. I. Notes with maturities of three months to be used for commercial purposes and having a total aggregate value of $500,000.
  2. II. Notes with maturities of two years to be used for investment purposes and having a total aggregate value of $300,000.
  3. III. Notes with maturities of two years to be used for commercial purposes and having a total aggregate value of $200,000.

Which of the above notes is(are) exempt securities and need not be registered under the Securities Act of 1933?

  1. I only.
  2. II only.
  3. I and III only.
  4. I, II, and III.

Which of the above notes is(are) subject to the antifraud provisions of the Securities Act of 1933?

  1. I only.
  2. II only.
  3. I and III only.
  4. I, II, and III.