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Portfolios 410: Bonds and Money Market Investments

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1.
Generally, the longer the maturity on a CD, the higher the interest rate.
Choose wisely. There is only one correct answer.
True. High interest rates are a way of rewarding investors for leaving their money invested for long periods.
2.
When a bondholder may redeem a bond before it matures, the privilege must be set down in a ________.
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Put provision. To "put" a bond is to redeem it via the bondholder. This privilege must be set down in writing before the bond is sold to the buyer.
3.
Which money market investment is used to pay for imports or exports?
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Banker's acceptance. This is used by banks to finance imports and exports.
4.
Which of the following does not sell municipal bonds?
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The federal government. Municipalities are state, county, or city levels of government.
5.
Agencies of the US government sell their own bonds.
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True. To finance their activities, they sell bonds to the public.
6.
You can buy series EE savings bonds only through TreasuryDirect.
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True. TreasuryDirect is now the only way to buy them.