Investment and D. Liquidity Question
Alicia Cooper makes sure to contribute ten percent of her monthly earnings to her 401(k) plan at work. Her 401(k) plan allows her to invest in several different types of mutual funds. Which suggestion for the obtaining money she needs for investing is she following?
A. Paying herself first
B. Taking advantage of employer-sponsored retirement programs
C. Participating in an elective savings program
D. Making a special effort once or twice a year to save
Question 2 of 20
After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small children and wants to make sure that both she and the children are taken care of in the …show more content…
dollar cost averaging.
B. dividend reinvestment plan.
C. regulated transaction.
D. secured transaction.
Question 16 of 20
A market for existing financial securities that are currently traded between investors is called the __________ market.
Question 17 of 20
What is bond laddering?
A. It's where an investor buys only long term bonds.
B. It's where an investor buys only short term bonds.
C. It's where an investor buys bonds that have maturities that are spread out over a number of maturities.
D. It's where an investor stacks a bond investment on top of a stock investment.
Question 18 of 20
Which of the following statements is correct?
A. Stock is a form of debt capital.
B. Stock must be repaid at maturity.
C. Bonds are a form of debt capital.
D. Bonds do not have to be repaid at maturity.
Question 19 of 20
John Peterson purchased a bond at a price far below its face value; it that makes no interest payments and will be redeemed at its face value at maturity. In all likelihood, he purchased a(n) __________ bond.
Question 20 of 20
If overall interest rates in the economy rise, a corporate