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1.
Agencies of the US government sell their own bonds.
True. To finance their activities, they sell bonds to the public.
2.
When you open a certificate of deposit, how long are you expected to leave your money there?
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.
3.
Which money market investment is used to pay for imports or exports?
Banker's acceptance. This is used by banks to finance imports and exports.
4.
Most municipal bonds are free of _______ on distributions of interest.
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.
5.
You can buy series EE savings bonds only through TreasuryDirect.
True. TreasuryDirect is now the only way to buy them.
6.
Zero coupon bonds do not pay periodic interest to their owners.
True. They lack "coupons," or periodic interest payments.