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Income Beginner:
Bonds and Money Market Investments
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
Banker's acceptances and revenue bonds are the two types of municipal bonds.
Choose wisely. There is only one correct answer.
True
False
False. General obligation bonds and revenue bonds are the two types.
2.
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.
3.
Agencies of the US government sell their own bonds.
Choose wisely. There is only one correct answer.
True
False
True. To finance their activities, they sell bonds to the public.
4.
When a bond is called back by the company, it is done so at the _______.
Choose wisely. There is only one correct answer.
Call price
Face amount
Conversion amount
Call price. This is the price at which it the holder must redeem the bond.
5.
Certificates of deposit are popular savings investments for people _______.
Choose wisely. There is only one correct answer.
Who want to take a lot of risk with their money
Who do not want to take a lot of risk with their money
Who want the opportunity to get higher-than-average earnings on their investments
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
Repurchase agreement
Commercial paper
Treasury bill. This is the only money market investment sold this way.
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DONE