Econ Savings and Billing

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

• 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 that a Certificate of Deposit (CD) - F

• Which bonds carry the least risk - AAA bonds

• Certificate of Deposit are less liquid than a regular savings account - T

• 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 - T

• 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 - T 

• Which of the following is NOT a characteristic of common stockholders - They directly manage the company 

• AAA bonds generally pay the highest interest rates - F

• Which of the following is not a stock index - P and E ratio 

• Money compounded quarterly earns more total interest than money compounded annually - T

• What can affect a stock’s value - All of the above

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

• Stocks form well-known companies are called - Blue Chip Stocks

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

• 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 - T

• How many years would it take to doule 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 - F

• 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 - T

• A method to make regular savings easier is - Automatic payroll deduction 

• A bear market is a rising stock market - F 

• If liquidity is important to you, which investment would you not want to consider - a townhouse 

• Credit unions are for profit organizations - F 

• 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 - T

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

• Bonds are less risky than stocks - T

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

• Face value of bonds is also called - Par value

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