Personal Finance chapter 13

The maturity dates for bonds range between ____________ and ____________ years

1 and 30

Which of the following investments would offer the greatest potential for predictable income?

Certificates of deposit

Which of the following investments would be considered the most liquid?

Corporate bonds

Money obtained from the owners of a business is called

Equity capital

A corporation is obligated to repay equity capital sometime in the future.

False

A good rule of thumb is to limit installment payments to 30 to 40 percent of your net monthly pay after taxes.

False

The ease with which an asset can be converted to cash without substantial loss in dollar value is called the income factor.

False

The fees for investor services generally range from $5 to $30 per year.

False

The safety and risk factors are unrelated to each other

False

The most important priority an investor in _____________ _____________ enjoys is receiving cash dividends before common stockholders are paid any cash dividends

Reverse Stock

Which of the following is not classified as a speculative investment?

Savings accounts

One of the best ways to use the internet to access investment information is to use a _________________ __________________

Search engine

Which of the following investments would offer the greatest potential for growth?

Stocks

A corporate bond is a corporation's written pledge to repay a specified amount of money along with interest.

True

Asset allocation is the process of spreading your assets among several different types of investments to lessen risk.

True

Investment goals must be specific, measurable, and tailored to your particular financial needs.

True

Professional management and diversification are the two primary reasons why investors choose mutual funds.

True

The amount of money that should be salted away in an emergency fund varies from person to person.

True

Accurate ___________ can help help you spot opportunities to maximize profits or reduce dollar losses when you sell your investments

current record

A short-term loan that is approved before the money is actually needed is called a(n)

line of credit

which of the following statements is not true?

location is not important when selecting a piece of real estate in a metropolitan area

A ____________ ____________ is an investment company that pools the money from many investors---its shareholders---to invest in a variety of securities

mutual fund

Which of the following statements is false?

professional assistance is too expensive for small investors with limited resources

A(n) ____________________ is a requirement for corporations selling a new issue of securities

prospectus

asset allocation is

the process of spreading your assets among several types of investments