12-19

12. If a preferred stock issue is cumulative, this means: a. dividends are paid at the end of the year. b. dividends are legally binding on the corporation. c. unpaid dividends will be paid in the future. d. unpaid dividends are never repaid. 13. Nonmarketable investments would include savings accounts at banks and Treasury bills. (a) True (b) False 14. Treasury notes represent the nontraded debt of the U.S. government. (a) True (b) False 15. The capital market includes both fixed-income and equity securities. (a) True (b) False 16. Which of the following is not a characteristic of investments companies? a. pooled investing b. diversification c. managed portfolios d. reduced expenses 17. The most popular type of investment company is a: a. unit investment trust. b. mutual fund. c. closed-end investment company d. real estate investment trust. 18. .Which of the following generally trade on stock exchanges? a. unit investment trusts b. closed-end investment companies c. open-end investment companies d. All trade on stock exchanges 19. If a mutual fund holds a substantial amount of Treasury bills, this is probably a(an) a. tax-exempt fund. b. conservative bond fund. c. income fund d. money market mutual fund