Free Investment (Property) Questions and Answers 1

Question 1

Which kind of bond is the most secure?

Accepted Answer

U.S. Treasury bond

Answer

Municipal bond

Answer

Don't know/Not sure

Answer

Corporate bond

Question 2

In general, higher-risk investments produce higher returns over time than lower-risk investments.

Accepted Answer

TRUE

Answer

FALSE

Question 3

Which of the following institutions protects you against stock market losses?

Accepted Answer

None of the choices

Answer

SEC (Securities and Exchange Commission)

Answer

FDIC (Federal Deposit Insurance Corporation)

Answer

FINRA (Financial Industry Regulatory Authority)

Question 4

Which of the following best explains why municipal bonds have lower yields than other government securities?

Accepted Answer

Municipal bonds can be tax-free

Answer

There is a greater demand for municipal bonds

Answer

Not sure

Answer

Municipal bonds are lower risk

Question 5

Which definition of "selling short" is the most accurate?

Accepted Answer

A stock that has been borrowed is being sold.

Answer

Selling a stock before it reaches its high point.

Answer

Shortly after purchasing a stock, you sell it.

Answer

A stock is sold at a loss when it is sold at a loss.

Question 6

A Section 529 Plan is a tax-advantaged approach to save for the:

Accepted Answer

College

Answer

Not sure

Answer

Retirement

Answer

Long-term medical treatment

Question 7

If you invest in a company's stock...

Accepted Answer

You have a stake in the corporation.

Answer

Your initial investment will be returned to you plus interest.

Answer

You are financially responsible for the company's debts.

Answer

You have made a financial contribution to the firm.

Question 8

Bond prices generally _________ as interest rates fall.

Accepted Answer

Ascend

Answer

Not sure

Answer

Are not impacted

Answer

Descend

Question 9

How many homes are there in a multi-family residential building?

Accepted Answer

Two or more

Answer

Five or more

Answer

One to four

Answer

More than one but fewer than six

Question 10

Which of the following information should be included in every business lease, in addition to the property address, the lease agreement start and end dates, and the monthly rent and deposit amounts?

Accepted Answer

The purpose for which the space is being rented

Answer

A complete list of the other tenants and their rental rates

Answer

A detailed description of the property

Answer

A copy of the tenant's credit report