SmartBook Assignment Chapter 11 CONNECT Assignment

Treasury have a maturity of 4 to 52 weeks.

bills

A rise in the general level of prices is called:

inflation

U.S. Treasury securities are a very low-risk investment that many investors use to allocate their investments and bring their overall risk down. Because of this low risk, they also offer a low ____________ rate.

interest

A general obligation bond is a bond backed by the full faith, credit, and unlimited _________ power of the government that issued it.

taxing

Which of the following investments are included in a diversified portfolio? Bonds Large company stocks Cash Antique cars Collectibles Small company stocks

Bonds Large Company Stocks Cash Small company stocks

Which of the following is NOT true about bonds? Bonds are a way to diversify your portfolio Government and corporate bonds are often seen as safer investments than stocks Bonds are often recommended over bond funds for small investors Bonds are considered a safe harbor in tough economic times

Bonds are often recommended over bond funds for small investors

True or false: Speculative investments are medium-risk investments made with the hope of earning a relatively large profit in a short amount of time.

False; Speculative investments are high-risk investments

Which of the following statements is not a factor to consider in choosing different investments? You should consider the tax consequences of selling an investment. You should evaluate potential investments. If you invest in high-quality stocks, there is no need to monitor your investments. You should keep accurate records of your investments.

If you invest in high quality stocks, there is no need to monitor your investments.

Which of the following is not true about the time value of money affecting investments? The length of time your money is invested makes a difference Many investors today seek higher returns by investing in certificates of deposit The rate of return on your money does make a difference If investments earn a higher rate of return, total dollar returns increase substantially

Many investors today seek higher returns by investing in certificates of deposit

Which of the following is NOT true? Many people invest in stocks and mutual funds to seek higher potential returns Many people in today's economy choose CD's because of their high rates of return Investments increase over time partly because earnings are allowed to accumulate Many people never start an investment program because they only have a small sum to invest

Many people in today's economy choose CD's because of their high rates of return

Which of the following are advantages of purchasing securities issued by the U.S. Treasury? Safe investment Risky investment Decreased risk of default Increased risk of default Backed by the government

Safe investment Decreased risk of default Backed by the government

Which of the following is NOT a factor to consider when choosing different investments? Evaluate potential investments by taking time to research different investments Monitor the value of your investments Tax consequence of selling investments are NOT important Keep accurate records

Tax consequence of selling investments are NOT important

True or false: Liquidity is the ability to buy or sell an investment quickly without substantially affecting the investment's value.

True

A(n) ___________ fund is an amount of money you can obtain quickly in case of an immediate need.

emergency

An amount of money that you obtain quickly in case of an immediate need is a(n):

emergency fund

Speculative investments assume a: medium level of risk high level of risk low level of risk zero risk level

high level risk

The ability to buy or sell an investment quickly without substantially affecting the investments value is called:

liquidity

"I want to make $300 quarterly for the next three years". This goal is not only specific but because it mentions a number, it is also:

measurable

Inflation is the rise in the general level of ________.

prices

Government and corporate bonds are often seen as (riskier/safer) investments than stocks.

safer

Useful investment goals are ________ and _________ .

specific; measurable

A municipal bond is a debt security issued by a _________ or local _________.

state; government

Mutual funds are not included in the list of typical investments because:

they invest in the assets on the list

Among other factors, a person's priorities, age, and personal ____________ affect his or her investment goals.

values, goals, or income

When looking at investment you should first ask yourself:

what is important to you and what do you value?