Income Beginner: Bonds and Money Market Investments

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1.
________ securities cannot be traded through exchanges or over the counter.
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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.
2.
Certificates of deposit are popular savings investments for people _______.
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Who do not want to take a lot of risk with their money. Certificates of deposit are low-risk investments and do not get high earnings.
3.
Which money market investment is used to pay for imports or exports?
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Banker's acceptance. This is used by banks to finance imports and exports.
4.
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.
5.
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.
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.