Unit 4 Investments Study Guide

When you invest in stocks and bonds, you are helping businesses make and sell new products and services.

• True

• False

Your initial investing should be conservative with low risk.

• True

• False

Mutual fund investors share in any profits made by the mutual fund.

• True

• False

Common stock can be issued without a par value.

• True

• False

With inflation, it takes more money to buy the same goods and services.

• True

• False

The interest rate is the main factor that affects bond prices.

• True

• False

Ownership interest in a piece of property is called equity.

• True

• False

Typically, heirs are spouses and children.

• True

• False

The more liquid an investment, the less earning potential it is likely to have.

• True

• False

Like certificates of deposit, there is a substantial penalty for taking money out of money market accounts.

• True

• False