Home > Income > Beginner
Income Beginner: Bonds and Money Market Investments

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.
When you open a certificate of deposit, how long are you expected to leave your money there?
Choose wisely. There is only one correct answer.
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.
2.
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.
3.
Banker's acceptances and revenue bonds are the two types of municipal bonds.
Choose wisely. There is only one correct answer.
False. General obligation bonds and revenue bonds are the two types.
4.
When a bondholder may redeem a bond before it matures, the privilege must be set down in a ________.
Choose wisely. There is only one correct answer.
Put provision. To "put" a bond is to redeem it via the bondholder. This privilege must be set down in writing before the bond is sold to the buyer.
5.
Which of the following contains more than one security?
Choose wisely. There is only one correct answer.
Money market mutual fund. A mutual fund buys numerous securities.
6.
Agencies of the US government sell their own bonds.
Choose wisely. There is only one correct answer.
True. To finance their activities, they sell bonds to the public.