|
T-bills are offered in what monetary increment? |
$1000 |
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Individuals have to choose whether to save or invest, since it is not recommended to do both. |
False |
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A stock is a share of what? |
Ownership |
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One of the advantages of having a savings account is that it is money that can be used for emergency purposes, whereas money in bonds, CDs, or investments may not be readily available. |
True |
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Common stocks are considered to be lower risk than municipal bonds |
False |
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Preferred stocks share characteristics with which of the following? |
Common stocks and corporate bonds |
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What is an advantage of government bonds? |
They are difficult to find. |
|
What is an advantage of a savings account? |
The money is available for an emergency |
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Real estate is a great investment for everyone, particularly since the money is more liquid than common stocks. |
False |
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The broad types of investments are known as which of the following? |
Asset classes |
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What is the process of earning interest on interest that you’ve already earned? |
Compounding |
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A bond indenture is which of the following? |
Legal document |
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Dividends are the periodic distribution of profits to investors. |
True |
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Speculative investments are which of the following? |
High risk |
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All investments carry the same amount of risk. |
False |
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