Income Beginner: Bonds and Money Market Investments

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1.
Agencies of the US government sell their own bonds.
Choose wisely. There is only one correct answer.
True. To finance their activities, they sell bonds to the public.
2.
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.
3.
A _______ is a federal government security sold in auctions and at a discount.
Choose wisely. There is only one correct answer.
Treasury bill. This is the only money market investment sold this way.
4.
Which of the following does not sell municipal bonds?
Choose wisely. There is only one correct answer.
The federal government. Municipalities are state, county, or city levels of government.
5.
You can buy series EE savings bonds only through TreasuryDirect.
Choose wisely. There is only one correct answer.
True. TreasuryDirect is now the only way to buy them.
6.
Zero coupon bonds do not pay periodic interest to their owners.
Choose wisely. There is only one correct answer.
True. They lack "coupons," or periodic interest payments.