6-11

6. Which of the following would be considered a risk-free investment? a. gold b. equity in a house c. high-grade corporate bonds d. U.S. Treasury bills 7. Which of the U.S. Treasury securities is always sold at a discount? a. Treasury bills b. Treasury notes c. Treasury bonds d. All of the Treasury securities are sold at a discount. Which of the following statements regarding money market instruments is not true? 8. a. They tend to be highly marketable. b. They have maturities from 1 to 3 years. c. They tend to have a low probability of default. d Their rates tend to move together. 9. What is the major difference between municipal bonds and other types of bonds? a. Municipal bonds are always insured; other bonds are not. b. Unlike other bonds, municipal bonds sell at a discount. c. Municipal bond interest is tax-exempt; interest on other bonds is not. d. There is no brokerage commission on municipal bonds unlike other bonds. 10. Fannie Mae is now an example of a: a. federal agency b. Government-sponsored enterprise c. federally dependent agency d. federally sponsored agency 11. An unsecured bond is known as a: a. Debentureb. indenture c.mortgage bond b. junk bond