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