Mutual Fund / Bond Review

What is a large pool of money that several people put together, and that is usually invested in stocks and bonds and managed by a financial expert?

• Mutual fund
• Stock
• Bond
• Bitcoin

How do mutual funds make money for their investors?

• Capital Appreciation and Dividends
• Dividends only

If a bond is held to maturity, the investor will receive an amount stated on the bond known as the _______.

• ticket value
• face value
• maturation value
• printed value

As an investor, if you wanted to diversify your retirement portfolio, which financial product should you select?

• Stock
• Mutual fund
• Bond
• Bitcoin

Select the type of investment most suitable for preserving wealth.

• Aggressive Growth Mutual Fund (Primarily Stocks)
• Blended Mutual Fund
• Conservative Mutual Fund (Primarily AAA Rated Bonds)
• Individual Stocks

The declared interest of the bond is called the ______ rate.

• bonded
• coupon
• agreed-upon
• declaration

Which of the following is the LEAST risky investment?

• corporate bonds
• stocks
• U.S. Treasury bonds
• mutual funds

A bond that pays all of its interest and principal at the bond’s maturity date is called a 

• a zero-coupon bond
• a bond fund
• a coupon bond
• a par-value bond

On the bond market, a bond trading at a HIGHER price than its par value is called a

• Discount bond
• Premium bond
• Low-cost bond
• Mark-up bond

This bond would NOT be taxed by the federal government

• U.S. Treasury Bond
• Municipal Bonds
• Corporate Bonds
• Zero-coupon bond