Personal & Family Finance Unit 7

T-bills are offered in what monetary increment? $1000
Individuals have to choose whether to save or invest, since it is not recommended to do both. False
A stock is a share of what? Ownership
One of the advantages of having a savings account is that it is money that can be used for emergency purposes, whereas money in bonds, CDs, or investments may not be readily available. True
Common stocks are considered to be lower risk than municipal bonds False
Preferred stocks share characteristics with which of the following? Common stocks and corporate bonds
What is an advantage of government bonds? They are difficult to find.
What is an advantage of a savings account? The money is available for an emergency
Real estate is a great investment for everyone, particularly since the money is more liquid than common stocks. False
The broad types of investments are known as which of the following? Asset classes
What is the process of earning interest on interest that you’ve already earned? Compounding
A bond indenture is which of the following? Legal document
Dividends are the periodic distribution of profits to investors. True
Speculative investments are which of the following? High risk
All investments carry the same amount of risk. False

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