Income Beginner: Bonds and Money Market Investments

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1.
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.
2.
What is sold on the money market?
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Short-term debt securities. Money market investments are short-term. That is their distinguishing feature.
3.
Agencies of the US government sell their own bonds.
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True. To finance their activities, they sell bonds to the public.
4.
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.
5.
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.
6.
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.