1. A stock transaction that is made immediately at the market price is made in the
a. futures market.
b. futures options market.
c. spot market.
d. options market.
2. Bonds
a. are insured by the federal government.
b. are contracts to repay borrowed money at regular intervals.
c. are rated according to risk from A through G.
d. are a consistently low-risk investment choice.
3. Which of the following statements is TRUE according to your information on using credit cards?
a. There are no extra costs associated with borrowing money using credit cards.
b. All credit cards offer the same features.
c. All credit card holders have to pay off the total balance of their cards each month.
d. There are various extra costs invovled when using a credit card, including the cardholder's annual percentage rate.
4. Investors who sign a contract guaranteeing them the option of selling shares of stock at a specified price in the future have agreed to a
a. call option.
b. spot option.
c. put option.
d. push option.
6. Junk bonds
a. are issued by municipalities.
b. are usually tax-exempt.
c. carry a low rate of return.
d. are exceptionally risky.