Questions from Personal Finance


Q: Both options and futures are risky investments. Identify one that seems

Both options and futures are risky investments. Identify one that seems like an unwise idea, and explain why it is unappealing.

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Q: Distinguish between investment- and speculative-grade bonds.

Distinguish between investment- and speculative-grade bonds.

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Q: What are the basic differences between corporate, U.S.

What are the basic differences between corporate, U.S. government, and municipal bonds?

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Q: Distinguish among Treasury bills, notes, and bonds.

Distinguish among Treasury bills, notes, and bonds.

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Q: Summarize the differences between I-bonds and TIPS bonds.

Summarize the differences between I-bonds and TIPS bonds.

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Q: Summarize why bonds and interest rates have an inverse relationship.

Summarize why bonds and interest rates have an inverse relationship.

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Q: Give a math example of how to calculate a bond’s yield to

Give a math example of how to calculate a bond’s yield to maturity that is different than the one in the book.

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Q: Identify one collectible that might be an interesting investment, and explain

Identify one collectible that might be an interesting investment, and explain why it might be difficult to make a profit.

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Q: Identify some risks of investing in precious stones and gems.

Identify some risks of investing in precious stones and gems.

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Q: Why should workers choose to save for retirement through a personally established

Why should workers choose to save for retirement through a personally established retirement account?

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