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Stocks and Bonds Quiz
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Stocks and Bonds Quiz

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@BlitheRubellite

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Questions and Answers

Which of the following is a type of investment mentioned in the text?

  • Stocks
  • Bonds
  • Property
  • All of the above (correct)
  • What is the most prevalent type of stock mentioned in the text?

  • Convertible stock
  • Common stock (correct)
  • Preferred stock
  • Non-voting stock
  • What is the formula for calculating dividend yield?

  • Stock Price - Dividend
  • Dividend x Stock Price
  • Dividend/Stock Price (correct)
  • Stock Price/Dividend
  • Which of the following is an accurate description of bonds?

    <p>Bonds represent a way for an entity to raise money.</p> Signup and view all the answers

    What is the relationship between the term or maturity of a bond and the interest rate?

    <p>The longer the term, the higher the interest rate.</p> Signup and view all the answers

    What is the relationship between the stability of a company and the interest rate on a bond?

    <p>The more stable the company, the lower the interest rate.</p> Signup and view all the answers

    What is the relationship between inflation and the rate of return on investments?

    <p>If the rate of return is lower than inflation, you are losing money.</p> Signup and view all the answers

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