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Income Beginner: Bonds and Money Market Investments

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1.
Agencies of the US government sell their own bonds.
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True. To finance their activities, they sell bonds to the public.
2.
You can buy series EE savings bonds only through TreasuryDirect.
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True. TreasuryDirect is now the only way to buy them.
3.
Banker's acceptances and revenue bonds are the two types of municipal bonds.
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False. General obligation bonds and revenue bonds are the two types.
4.
Which of the following contains more than one security?
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Money market mutual fund. A mutual fund buys numerous securities.
5.
Generally, the longer the maturity on a CD, the higher the interest rate.
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True. High interest rates are a way of rewarding investors for leaving their money invested for long periods.
6.
When a bondholder may redeem a bond before it matures, the privilege must be set down in a ________.
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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.