1.A correct statement regarding bonds would be A. they are generally held for 3 or 6 months. B. they entitle the holder to a share of ownership in a corporation. C. they are insured by the FDIC. D. they are usually a low-risk investment. 2.Which investment would give an investor equity? A.a treasury bond. B.a long-term certificate of deposit. C.a treasury bill. D.a share of stock. 3.To raise money to build a new city fire station, a city government is most likely to issue a A. municipal bond. B. money market bond. C. treasury bond. D.junk bond. 4.Cindy received a tax refund of $6,000. She needs the money in September to pay tuition, so she deposits it in a savings account because her financial goal is A.receiving the maximum amount of interest possible. B. taking a risk in hopes that she'll get a high return. C.making a safe long term investment. D.liquidity, since she'll need to use the money in a short time. 5.A person is part-owner of ToyCorp corporation due to the fact that they A.attend the company's annual meetings. B.own the company's stock. C.have created a corporate charter for the company. D.have purchased company bonds. 6.The Dow Jones Industrial Average contains A.500 different stocks that change annually. B.the top-selling 250 stocks over a 10-year period. C.30 stocks that are considered representative of the US market as a whole. D.60 stocks selected from the NYSE, the NASDAQ-AMEX, and the OTC market. 7.The benefit of diversification as an investment strategy is that it A.increases investors' access to their money. B.guarantees a fixed rate of return on an investment. C.offsets the effects of inflation on investments. D.reduces risk to investors. 8.The main reason Americans invest is: A.To afford vacations. B.For retirement. C.To buy a house. D.To buy an expensive car. 9.The interest rate the bond issuer distributes to the bond buyer is titled the A.value rate. B.coupon rate. C.maturity rate. D.discount rate. 10.Bonds have lower short term risk than stocks, consequently they A.mature quickly. B.take a long time to mature. C.have high interest rates. D.have low interest rates. 11.stock splits are most common when A.the price of a share becomes too high for small investors to purchase. B.a company is losing money. C.the stock market as a whole is doing poorly. D.stockholders demand higher dividends. 12.An example of investing would be: A.Buying assets like cars & iphone to resell at profit. B.Purchasing Stocks, Bonds, or land with the hope that the value will increase later. C.Lending your friend all of your savings to start a business. D.Purchasing a money NFT with all of your savings. 13.Which of the following is a high risk investment: A.junk bonds. B.treasury bonds. C.savings bonds. D.municipal bonds. 14.In a publicly held corporation A.stocks are not usually traded at stock exchanges. B.a large number of stockholders can buy and sell stock. C.family members are excluded from holding stock. D.stockholders rarely trade their stocks. 15.When you invest in a mutual fund A.your money is invested in a variety of insurance policies. B.your money is invested in a variety of stocks and bonds by a fund manager. C.you are guaranteed a fixed return on your investment. D.you have easier access to your money than in a savings account. 16.Your friend asks you to invest $500 at 6 percent interest in her daycare business. If the business fails she will not pay you back. She has no business experience. How can you offset (make up for) your risk? A.Ask for a higher interest rate. B.Use the $500 to open a savings account. C.Lend you neighbor the $500 and keep your fingers crossed. D.Invest your $500 in a certificate of deposit. 17.Your sister Melissa has just saved $5000 and would like to invest the money in the stock market. You suggest that she A.contact Nasdaq, who will assign a stockbroker to him. B.call the New York Stock Exchange, who can direct him to the OTC market. C.open an online stock brokerage account. (ETrade, Robinhood, Schwab) D.reserve a seat at the New York Stock exchange