All Courses > Bonds > 100
Bonds 107: Secured and Unsecured Bonds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Mortgage bonds are backed by _______.
Choose wisely. There is only one correct answer.
Real estate. That is why they are called mortgage bonds.
2.
Which bond's interest and principal can be repaid by the US government?
Choose wisely. There is only one correct answer.
Treasury bond. The US Treasury sells its own bonds.
3.
Although unsecured bonds have no backing, they are protected from default by a promise to pay.
Choose wisely. There is only one correct answer.
True. This promise is called "full faith and credit," and many corporations and government units with good credit use it.
4.
Unsecured bonds are issued with the issuer's promise to offer stock options in the future.
Choose wisely. There is only one correct answer.
False. The sellers do not offer stock options to investors at a later date when issuing unsecured bonds.
5.
What is a debenture?
Choose wisely. There is only one correct answer.
A bond without collateral behind it. Some pay high yields, and many are sold by corporations, but all of them lack collateral.