BUS 201 MONEY - FINAL QUESTIONS WITH ACCURATE
ANSWERS
APR correct answer the % cost of credit on a yearly basis
asset allocation correct answer placing assets among several types of investments
which lessens your investment risk
Bankruptcy correct answer Chapter 7 -
bond indenture correct answer legal conditions
Bond Ratings correct answer range from AAA to D
business failure risk correct answer bad management or products affect stocks
callable bond correct answer companies pay it off early
closed-end funds correct answer after all original shares are sold, you can
purchase shares only from another investor
convertible bonds correct answer corporate bond that can be converted into
stock
Cost of Credit correct answer I=PrT
, cyclical stock correct answer usually luxury items
denture bond correct answer - most corporate bonds
- unsecured, backed only by reputation of issuing company
emergency funds correct answer should be enough for 6-9 months
exchange-traded funds correct answer invest in stocks or other securities
contained in a specific stock or securities index
face value correct answer dollar amount that bondholders ill receive at bond's
maturity date
global investment risk correct answer more difficult to evaluate and changes in
currency affect the return on your investment
Government Issue Bonds correct answer 1. Treasury Bills
- $100 minimum
- 4, 13, 26, 56 weeks to mature
- sold at a discount
2. Treasury Notes
- $100 units
- 2, 3, 5, 7, and 10 year terms
- interest paid every 6 months
3. Treasury Bonds
ANSWERS
APR correct answer the % cost of credit on a yearly basis
asset allocation correct answer placing assets among several types of investments
which lessens your investment risk
Bankruptcy correct answer Chapter 7 -
bond indenture correct answer legal conditions
Bond Ratings correct answer range from AAA to D
business failure risk correct answer bad management or products affect stocks
callable bond correct answer companies pay it off early
closed-end funds correct answer after all original shares are sold, you can
purchase shares only from another investor
convertible bonds correct answer corporate bond that can be converted into
stock
Cost of Credit correct answer I=PrT
, cyclical stock correct answer usually luxury items
denture bond correct answer - most corporate bonds
- unsecured, backed only by reputation of issuing company
emergency funds correct answer should be enough for 6-9 months
exchange-traded funds correct answer invest in stocks or other securities
contained in a specific stock or securities index
face value correct answer dollar amount that bondholders ill receive at bond's
maturity date
global investment risk correct answer more difficult to evaluate and changes in
currency affect the return on your investment
Government Issue Bonds correct answer 1. Treasury Bills
- $100 minimum
- 4, 13, 26, 56 weeks to mature
- sold at a discount
2. Treasury Notes
- $100 units
- 2, 3, 5, 7, and 10 year terms
- interest paid every 6 months
3. Treasury Bonds
