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Portfolios 410: Bonds and Money Market Investments

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1.
When a bond is called back by the company, it is done so at the _______.
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Call price. This is the price at which it the holder must redeem the bond.
2.
You can buy series EE savings bonds only through TreasuryDirect.
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True. TreasuryDirect is now the only way to buy them.
3.
Certificates of deposit are popular savings investments for people _______.
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Who do not want to take a lot of risk with their money. Certificates of deposit are low-risk investments and do not get high earnings.
4.
Agencies of the US government sell their own bonds.
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True. To finance their activities, they sell bonds to the public.
5.
Which of the following contains more than one security?
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Money market mutual fund. A mutual fund buys numerous securities.
6.
Most municipal bonds are free of _______ on distributions of interest.
Choose wisely. There is only one correct answer.
Federal tax. They are also free of state and local taxes in the states in which they are issued. However, if you own one from one state but you live in another, you will owe state and/or local taxes on it.