Ch. 19 Test

Which of the following is investing for current income?

• Retired person who needs to pay living expenses

• Business manager planning for retirement

• Student putting away money for college

• Family that wants to buy a vacation home

The most liquid investment listed here is

• Rare coins

• Real estate

• A savings account

• A house

A person who desires high income from an investment would be most concerned with

• Safety

• Return

• Liquidity

• Risk

Municipal bonds are issued by

• Corporations

• The federal government

• International companies

• State and local governments

The price of a mutual fund share is most affected by

• Current tax rates

• The value of investments

• Current foreign rates

• The value of housing

The person who reports on the value of a home is a(n)

• Lawyer

• Real estate agent

• Appraiser

• Mortgage broker

A common financial benefit of home ownership is

• Low property insurance costs

• Tax deduction for your down payment

• Increased property value

• Low maintenance costs

The value of collectibles is most influenced by

• The current tax rate on investments

• Government regulations of the market

• The futures market for commodities

• Interest buyers and potential sellers

This savings plan has a low or zero minimum balance and rarely has restrictions on deposits and withdrawals.

• money market account

• certificate of deposit

• safe-deposit account

• savings account

Real estate is considered to be

• land

• anything attached to land

• both a and b

• neither a nor b