10 Questions
Debt investments involve loaning money to home buyers.
True
Home buyers make ownership investments by purchasing assets.
True
Certificates of deposit (CDs) are similar to checking accounts.
False
Mutual funds buy and sell stocks and bonds on behalf of investors.
True
Investors in mutual funds become direct owners of the securities in the fund.
False
Savings accounts are used by banks to make loans to borrowers.
True
Certificates of deposit allow depositors to withdraw funds penalty-free at any time.
False
Securities can be either ownership or debt investments.
True
Bonds represent ownership stakes in a company.
False
Coupon rate refers to the face amount of a bond.
False
Test your knowledge on investments and returns with this quiz. Learn about concepts such as principal, loan term, interest, investment capital, return on investment, and return of investment.
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