SOLVED

46) ________ refer to short-term debt securities issued by the federal government. A) Municipal bonds B) Treasury bills C) TIPS D) Treasury notes E) Treasury bonds 47) ________ refer to debt securities issued by the federal government that are repaid within 1 to 10 years after issuance. A) Municipal bonds B) Treasury bills C) Treasury bonds D) TIPS E) Treasury notes 48) ________ refer to debt securities issued by the federal government that are repaid more than 10 years after issuance. A) Treasury bonds B) TIPS C) Treasury notes D) Municipal bonds E) Treasury bills 49) ________ refer to treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation. A) Treasury notes B) Treasury bills C) Treasury bonds D) TIPS E) Municipal bonds 50) Bonds issued by states, cities, and various government agencies to fund public projects are known as ________. A) treasury bonds B) treasury bills C) TIPS D) treasury notes E) municipal bonds 51) Portfolio diversification is performed to ________. A) protect against significant declines in any one vehicle B) maximize the returns from any one vehicle C) reduce the load that intermediaries charge D) maximize the earning potential of a portfolio E) maximize the earning potential of an investment vehicle 52) Norbon Securities is a financial intermediary. The firm facilitates the sale of mutual funds and charges commission when selling mutual funds to investors. This commission is referred to as ________. A) bill B) index C) load D) yield E) coupon 53) No-load funds are mutual funds that ________. A) do not charge sales commission B) offer high rates of interest C) offer low rates of interest D) do not invest in equity shares E) offer huge tax benefits to investors 54) Funds that invest in a combination of stocks and bonds are called ________ funds. A) specialized B) sector C) restricted D) balanced E) socially responsible 55) Dobex Investing is a fund management company. Most of the firm’s funds are invested in a wide mixture of stocks and bonds. Such funds are called ________ funds. A) balanced B) sector C) restricted D) specialized E) socially responsible