Chapter 19 Quiz Review

Saving money in a systematic way is the basis for achieving your financial goals.

• True

• False

Investing in commodities is considered to be a very safe, stable alternative investment.

• True

• False

Common stock represents ownership in a corporation and has priority over preferred stock.

• True

• False

A full-service broker provides information about securities you may want to purchase.

• True

• False

Many people buy municipal bonds because they are exempt from federal and most state taxes.

• True

• False

Series EE bonds are bought at full face value and pay a fixed rate of interest.

• True

• False

Monthly payments for adjustable-rate mortgages are often higher than fixed-rate mortgages.

• True

• False

Rare stamps, coins, art, and antiques are items on which investors can make a large profit.

• True

• False

Which type of savings or investment choice entails lending money to businesses or governments?

• bonds

• certificate of deposit

• savings account

• stocks

• money market

Which type of savings or investment choice entails becoming part owner of a company?

• stocks

• savings account

• bonds

• money market

• certificate of deposit