Chapter 19 Test Review

The more frequently interest is compounded, the slower the growth in savings.

• True

• False

Usually, higher risk investments pay higher yields than lower risk investments.

• True

• False

Investors who do their own research can save money by using a full-service broker.

• True

• False

Most corporate bonds are issued for $10,000.

• True

• False

An investment with an unusually high risk is called a speculative investment.

• True

• False

The money you receive for letting others use your money is called

• premiums

• interest

• security

• collateral

Which of the following is NOT a commodity?

• gold

• livestock

• grain

• real estate

Which of the following investments are listed in order from lowest risk to highest risk?

• municipal bond, U.S. savings bond, growth stock, commodities

• commodities, growth stock, U.S. savings bond, municipal bond

• U.S. savings bond, municipal bond, growth stock, commodities

• growth stock, U.S. savings bond, commodities, municipal bond

A business organization that accommodates the buying and selling of securities is called a(n)

• credit bureau.

• mutual savings bank

• stock exchange

• credit union

Bonds issued by local and state governments are called

• mutual bonds

• corporate bonds

• municipal bonds

• U.S. government savings bonds