Exam 11: Investing Fundamentals and Bonds

For many people, the easiest way to begin an investment program is to participate in an employer-sponsored retirement account - often referred to as a 401(k) or a 403(b).

Which of the following securities are rated by 4 companies?

Assume that you purchase a $1,000 bond issued by Harley-Davidson that pays 6% interest each year, paid every 6 months. What is the amount of each interest payment?

A good rule of thumb is to limit consumer credit payments to 30% of your net (after-tax) income.

Asset allocation is the process of spreading your assets among several different types of investments to increase risk.

Which of the following is not a true statement?

All of the following can be factors that influence business failure risk except

If you are unable to make your credit card payments, you should not contact your credit card company.

Which of the following does not describe a growth company?

Which of the following risks associated with preferred stocks or government or corporate bonds is a result of changes in rates in the economy?

A bond backed by the full faith, credit, and unlimited taxing power of the government that issued it is called a ____________ bond.

Municipal bonds generally are only tax-exempt at the federal level.

Younger investors tend to invest in more growth-oriented investments than older investors.

A fancy way of saying you need to diversify your investments is

A discounted security means that the actual purchase price is

When choosing an investment, you should consider risk. The four primary risk components are

A fund to which annual or semiannual deposits are made for the purpose of redeeming a bond issue is called a(n) ____________ fund.

Business failure risk can be due to

Short-term goals should be completed in 30 or fewer days.

Which of the following would be considered speculative investments?