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Questions and Answers
Debt investments involve loaning money to home buyers.
Debt investments involve loaning money to home buyers.
True (A)
Home buyers make ownership investments by purchasing assets.
Home buyers make ownership investments by purchasing assets.
True (A)
Certificates of deposit (CDs) are similar to checking accounts.
Certificates of deposit (CDs) are similar to checking accounts.
False (B)
Mutual funds buy and sell stocks and bonds on behalf of investors.
Mutual funds buy and sell stocks and bonds on behalf of investors.
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Investors in mutual funds become direct owners of the securities in the fund.
Investors in mutual funds become direct owners of the securities in the fund.
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Savings accounts are used by banks to make loans to borrowers.
Savings accounts are used by banks to make loans to borrowers.
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Certificates of deposit allow depositors to withdraw funds penalty-free at any time.
Certificates of deposit allow depositors to withdraw funds penalty-free at any time.
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Securities can be either ownership or debt investments.
Securities can be either ownership or debt investments.
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Bonds represent ownership stakes in a company.
Bonds represent ownership stakes in a company.
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Coupon rate refers to the face amount of a bond.
Coupon rate refers to the face amount of a bond.
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