Personal Finance Ch. 12 Practice Test

Government bonds have a high risk default

Which Standard & Poor's rating designates the riskiest investment?   

When a company calls a bond, it usually owes bondholders a premium.

To reach maturity, Treasury bills take between _

A zero-coupon bond differs from other bonds because _

A bond price quotation is the percentage of the bond's face value used to determine its current market value.

A sinking fund is a fund that is losing money.

Mid-cap funds include stocks of companies with total capitalization $2 billion to $10 billion.

Biotechnology is an example of an index fund.

To pay for a new school, a local government may issue a municipal bond.

A mortgage bond may be traded for shares of common stock.

Index funds may have lower management fees

Only a fixed number of shares are issued for a(n) _

Diversification is the key reason for buying a _

Series I bonds are inflation-indexed.

An investor can trade a bond for shares of the corporate stock if the bond is a _