Quizzes

Quizzes

Investor Information

Stocks and Bonds

Once you've made the crucial decision to set aside money for the future, you must then figure out where to invest it. See what you know about stocks and bonds with this quiz.

    1. Cash savings probably will not significantly outpace inflation.

       True 

       False

    2. The risks of investing decline over time.

       True 

       False

    3. Bonds have traditionally been considered income-producing investments.

       True 

       False

    4. When interest rates are rising, the stock market isn't usually as strong as it is when rates are falling.

       True 

       False

    5. Buying a bond for less than par and selling it for more than par can result in a substantial profit.

       True 

       False

    6. Stocks are investments designed to help your money grow.

       True 

       False

    7. Laddering bonds is a strategy designed to protect yourself against the risk that interest rates will decline.

       True 

       False

    8. High rated municipal bonds usually have lower yields than corporate bonds because they have a tax advantage.

       True 

       False

    9. The key difference among U.S. Treasury bonds, bills and notes is their term.

       True 

       False

    10. Because investors consider the U.S. government the most creditworthy borrower in the world, they refer to the latest 30 year Treasury bond as the benchmark against which all other bonds are measured.

       True 

       False

    All answers are true

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