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Portfolios 410: Bonds and Money Market Investments

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1.
________ securities cannot be traded through exchanges or over the counter.
Choose wisely. There is only one correct answer.
Non-marketable. They are called non-marketable because they cannot be sold to other investors after they have been issued. They must be redeemed back to the government.
2.
Zero coupon bonds do not pay periodic interest to their owners.
Choose wisely. There is only one correct answer.
True. They lack "coupons," or periodic interest payments.
3.
Most municipal bonds are free of _______ on distributions of interest.
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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.
4.
You can buy a savings bond for as little as _______.
Choose wisely. There is only one correct answer.
$25. This is the minimum amount; it increases by the penny.
5.
Certificates of deposit are popular savings investments for people _______.
Choose wisely. There is only one correct answer.
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.
6.
A _______ is a federal government security sold in auctions and at a discount.
Choose wisely. There is only one correct answer.
Treasury bill. This is the only money market investment sold this way.