BF120 Quiz 2 Review

The amount owed on a debt is commonly called what? 

• Principal

• Debt

• Payments

• Coupon

An agreement for the future delivery of a commodity at a specified date is called what? 

• Debt

• Exchange Contract

• Coupon Rate

• Futures Contract

Which of the following is a source of return in investments? 

• Income Tax

• Capital Gains

• Refund Check

• Debt Repayment

Savings bonds issued in small monetary amounts by the federal government are called what? 

• White House Bonds

• Series A Bonds

• Treasury Debt

• Series EE Bonds

What is a bond in the context of business financing?

• A type of equity that gives stock ownership

• A certificate of debt issued to manage payroll

• A method to secure physical assets

• A form of debt financing where a business borrows money from investors and repays with interest

What is a bond in the context of business financing?

• A type of equity that gives stock ownership

• A certificate of debt issued to manage payroll

• A method to secure physical assets

• A form of debt financing where a business borrows money from investors and repays with interest

A person who agrees to pay off a loan if the original party does not pay

• Collateral

• Character

• Character

• Cosigner

the amount of money an investment earn

• risk

• compound interest

• 401(k)

• return

Which best describes a marketable bond?

• one that is bought and sold in the open market
• one that later becomes a stock at a market
• one that comes from a governing body
• one that is paid back before maturity

money

• Anything of value that is accepted in return for goods or services

• Document that guarantees the payment of a specific amount of money, either on demand, or at a set time with the payer named on the document.

• Type of financial investment issued by a corporation, government, or other organization.

• Security that pays interest over terms of ten to thirty years.