Which best explains why many municipal bonds pay lower yields than other government bonds?

Municipal bonds can be tax-free

Which is the best definition of "selling short"?

Selling borrowed shares of a stock

The principal difference between mutual fund share classes(Class A, Class B, Class C, etc.) is:

The different fees and expenses each class charges

Which of the following is the best definition for a "junk bond?"

A bond that is rated as "below investment-grade" by agencies

If you buy a company's bond...

You have lent money to the company

studbud

Investor Knowledge

15 termsStudBud Administration22 plays

A helpful guide to learning more about investing.

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
What is a reasonable annual return that can be expected from a diversified stock mutual fund?
15%
10%
32%
5%
2
Which best explains why many municipal bonds pay lower yields than other government bonds?
Municipal bonds are FDIC insured
Municipal bonds are lower risk
There is a greater demand for municipal bonds
Municipal bonds can be tax-free
3
Which of the following organizations insures you against your losses in the stock market?
SEC (Securities nd Excange Commission)
FINRA (Financial Industry Regulatory Authority)
FDIC (Federal Deposit Insurance Company)
None of the above
4
Which is the best definition of "selling short"?
Selling borrowed shares of a stock
Selling shares of stock shortly after buying it
Selling shares of a stock before it has reached its peak
Selling shares of a stock at a loss
5
The principal difference between mutual fund share classes(Class A, Class B, Class C, etc.) is:
The different investment advisers who manages each class
The different investments each class makes
The different fees and expenses each class charges
None of the above
6
A "no-load" mutual is one that...
Carries no fees
Carries no sales charges
Has no limits on the period of time it can be bought & sold
Does not contain high-risk securities
7
Which type of bond is the safest?
Corporate bond
Municipal bond
U.S. Treasury bond
Stock
8
Which of the following is the best definition for a "junk bond?"
A bond that has defaulted
A bond that has declined dramatically in value
A bond that is not regulated
A bond that is rated as "below investment-grade" by agencies
9
Investments that are riskier have higher returns over time than investments with less risk.
True
False
10
If bankruptcy occurs, which of the following securities is most at risk of becoming worthless?
The company's bonds
The company's common stock
The company's preferred stock
The company's plant and equipment
11
If you buy a company's stock...
You have lent money to the company
The company will return your original investment & interest
You own a part of the company
You are liable for the company's debts
12
Over the last 20 years in the U.S., the best average returns have been generated by:
Stocks
Money market accounts
CDs
Bonds
13
A Section 529 Plan is a tax-advantaged way to save for:
Insurance
Retirement
Long-term health care
College
14
In general, if interest rates go down, then bond prices...
Go sideways
Go up
Go down
Are not affected
15
If you buy a company's bond...
You can vote on shareholder resolutions
You are liable for the company's debts
You own a part of the company
You have lent money to the company

Investor Knowledge Flashcards | StudBud