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1.
Banker's acceptances and revenue bonds are the two types of municipal bonds.
False. General obligation bonds and revenue bonds are the two types.
2.
When a bondholder may redeem a bond before it matures, the privilege must be set down in a ________.
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.
3.
________ securities cannot be traded through exchanges or over the counter.
Non-marketable. They are called non-marketable because they cannot be sold to other investors after they have been issued. They must be redeemed back to the government.
4.
One advantage of savings bonds is _______.
The small minimum purchase required. You can buy savings bonds in amounts as low as $25.
5.
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.
6.
Which of the following contains more than one security?
Money market mutual fund. A mutual fund buys numerous securities.