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There is no risk of lost of principal when investing in cash equivalents such as certificates of deposits (CD) and money market funds. True False

There is no risk of lost of principal when investing in cash equivalents such as certificates of deposits (CD) and money market funds.

True

False

A short-term debt instrument with initial maturity of 60 days to one year issued by a major industrial corporation is

commercial paper.

bankers acceptance.

certificate of deposit (CD).

municipal paper.

none of the above

I bonds earn a fixed rate of return, while EE bonds earn a combined rate composed of a fixed rate of return known when the bond is purchased, and an inflation rate that the Treasury calculates twice a year based on the Consumer Price Index for all Urban Consumers (CPI-U).

True
False

Treasury bills and bonds receive semiannual interest payments.

True
False

The U.S. government issues savings bonds in minimum denominations of

$10,000

$50

$2,500

$1,000

$25

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