1. Pre-Test T/F
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Questions and Answers

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.

<p>True</p> Signup and view all the answers

Investors in mutual funds become direct owners of the securities in the fund.

<p>False</p> Signup and view all the answers

Savings accounts are used by banks to make loans to borrowers.

<p>True</p> Signup and view all the answers

Certificates of deposit allow depositors to withdraw funds penalty-free at any time.

<p>False</p> Signup and view all the answers

Securities can be either ownership or debt investments.

<p>True</p> Signup and view all the answers

Bonds represent ownership stakes in a company.

<p>False</p> Signup and view all the answers

Coupon rate refers to the face amount of a bond.

<p>False</p> Signup and view all the answers

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