WorksheetsCorporate Bonds and Stocks Quiz
Total questions: 11
Worksheet time: 8mins
Which is a corporate IOU?
bank account
bonds
stocks
Which one gives you an ownership, or “share,” in a company?
bank account
bonds
stocks
Which one is offered by the U.S. government as well as by private corporations?
bank account
bonds
stocks
Government bonds and corporate stocks are
Substitutes
Complements
Which bond will usually pay a higher interest rate?
Bond rated AAA
Bond rated BBB
Which bond will usually pay a higher interest rate?
U.S. government bond
General Motors bond
Which bond will usually pay a higher interest rate?
Citibank bond that gets repaid in 30 years
Citibank bond that gets repaid in 1 year
Suppose you’d like to invest in a company and you’ve narrowed your choice down to three firms: Company A is offering a zero-coupon bond with a face value of $1000 to be repaid in 1 year for $963. Company B has the same face value and maturity date but sells for $871. And company C also has the same face value and maturity but sells for $985. In which would you rather invest?
Company A
Company B
Company C
Cannot be determined with the given information
How do government bonds differ from corporate bonds?
Government bonds are not backed by the government
Government bonds are riskier than corporate bonds
Government bonds are issued by the government, while corporate bonds are issued by corporations.
Corporate bonds have higher interest rates than government bonds
What is the primary purpose of a stock exchange?
To provide a platform for the trading of commodities
To provide a platform for the trading of stocks, bonds and other securities
To provide a platform for the trading of real estate
To provide a platform for the trading of cryptocurrencies
Revenue cost of goods sold is called what?
Mutual Funds
Gross Profit
Operating expenses
Net income
