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You can buy series EE savings bonds only through TreasuryDirect.

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True

False

True. TreasuryDirect is now the only way to buy them.

What is the actual price of a government bond quoted at 92.4?

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$924

$92.40

$921.25

$93.25

$921.25. Government bonds are quoted as parts of $100. The 92 means $920. Amounts less than 1 are quoted in 32nds. Thus, the .4 in the quote means 4/32, which is $1.25. The quote works out to $920 + $1.25 = $921.25.

When you open a certificate of deposit, how long are you expected to leave your money there?

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For as long as you want

For one year

For a specific term

For a specific term. CDs are meant to hold money for a specific term, such as a month, six months, a year, etc. You are expected to leave your money deposited during that time.

What is sold on the money market?

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Treasury bonds

Savings bonds

Short-term debt securities

None of the other choices

Short-term debt securities. Money market investments are short-term. That is their distinguishing feature.

Zero coupon bonds do not pay periodic interest to their owners.

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True

False

True. They lack "coupons," or periodic interest payments.

Banker's acceptances and revenue bonds are the two types of municipal bonds.

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True

False

False. General obligation bonds and revenue bonds are the two types.

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