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1.
Generally, the longer the maturity on a CD, the higher the interest rate.
True. High interest rates are a way of rewarding investors for leaving their money invested for long periods.
2.
Which of the following does not sell municipal bonds?
The federal government. Municipalities are state, county, or city levels of government.
3.
What is the actual price of a government bond quoted at 92.4?
$921.25. Government bonds are quoted as parts of $100. The 92 means $920. Amounts less than 1 are quoted in 32nds. Thus, the .4 in the quote means 4/32, which is $1.25. The quote works out to $920 + $1.25 = $921.25.
4.
Zero coupon bonds do not pay periodic interest to their owners.
True. They lack "coupons," or periodic interest payments.
5.
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.
6.
You can buy series EE savings bonds only through TreasuryDirect.
True. TreasuryDirect is now the only way to buy them.