Econ Savings and Billing

Short-term needs include such things as home ownership, higher education, and retirement

False

The 3 types of bonds you can invest in are

 Municipal, U.S savings, and corporations

A regular savings account pays a higher interest rate than a Certificate of Deposit (CD

False

Which bonds carry the least risk

AAA Bonds

Certificate of Deposit are less liquid than a regular savings account

True

A bond that can be exchanged for shares of common stock is a

Convertible Bond

The law requires all financial institutions to tell consumers the Annual Percentage Rate (APR) on their account

True

Which of the following is true about preferred stock

It carries less risk than common stock

Convenience is one reason why many people choose a financial institution

True

Which of the following is NOT a characteristic of common stockholders

They directly manage the company

AAA bonds generally pay the highest interest rates

False

Which of the following is not a stock index

P and E ratio 

Money compounded quarterly earns more total interest than money compounded annually

True

What can affect a stock’s value

All of the above

For investors, short terms, temporary investments in stocks, is generally considered risky

True

Stocks form well-known companies are called

Blue Chip Stocks

Mutual funds have a disadvantage because they lack professional management and diversification

False

What is the investment strategy that uses borrowed money to buy securities

Leverage 

The more risk you are willing to take in investing, the more you have to gain or lose

true

How many years would it take to double your money on an investment that pays an 8% interest rate

9

Although real estate represents a non-liquid investment, it has usually proven to be a protection against inflation

T

Which of these is NOT a risky investment

 All are risky investments

Penny stocks are low priced stocks of companies with excellent track records looking for additional investors

False

The date on which a certificate of deposit is due is called the

Maturity Date

Preferred stock pays a fixed dividend and carries no voting rights

True

A method to make regular savings easier is

Automatic payroll deduction 

A bear market is a rising stock market

False

If liquidity is important to you, which investment would you not want to consider

a townhouse

Credit unions are for-profit organizations

False

Which of the following is not a short-term need

Down payment on a house 

When you buy a U.S. Savings bond, you are lending money to the government

True

You will receive the greatest investment on your principal if interest is compounded

Daily

Bonds are less risky than stocks

True

Bonds are rated on a scale of 1 to 10, 10 being the highest bond ratings and 1 being the lowest

False

Face value of bonds is also called

Par Value