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Income Beginner: Bonds and Money Market Investments

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1.
Which of the following contains more than one security?
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Money market mutual fund. A mutual fund buys numerous securities.
2.
Agencies of the US government sell their own bonds.
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True. To finance their activities, they sell bonds to the public.
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.
One advantage of savings bonds is _______.
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The small minimum purchase required. You can buy savings bonds in amounts as low as $25.
5.
When you open a certificate of deposit, how long are you expected to leave your money there?
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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.
6.
When a bond is called back by the company, it is done so at the _______.
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Call price. This is the price at which it the holder must redeem the bond.