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1.
When a bond is called back by the company, it is done so at the _______.
Call price. This is the price at which it the holder must redeem the bond.
2.
Banker's acceptances and revenue bonds are the two types of municipal bonds.
False. General obligation bonds and revenue bonds are the two types.
3.
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.
4.
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.
5.
Agencies of the US government sell their own bonds.
True. To finance their activities, they sell bonds to the public.
6.
One advantage of savings bonds is _______.
The small minimum purchase required. You can buy savings bonds in amounts as low as $25.