The highest denomination of U.S. currency is:The $20 billThe $100 billThe $1,000 billThe $100,000 bill
A benchmark asset, commonly considered by investors to be risk-free:Treasury Bill (T-Bill).Share of preferred stock.A EurobondA junk bond.
A limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.
Stocks whose returns are tied closely to the overall national economy are typically called:Blue Chip stocks.Defensive stocks.Speculative stocks.Cyclical stocks.
A stock certificate:Is always issued to the individual investor.Represents a primary claim on the firm’s assets.Represents ownership in a corporation.Is handwritten.
Investments in CDs:Are riskier than investments in stocks.Are inferior to investments in 8-tracks and vinyl records.Are always tax deferred.Are insured by the FDIC, but have generally underperformed stock investments over the long run.
A 35-year old individual with 4 young children and a spouse who doesn’t work should probably consider purchasing which of the following types of insurance:Long-term care insurance.Disability insurance.Life insurance.(b) and (c).
Dividends are taxed:At the investor’s marginal income tax rate.At a maximum rate of 15%.Only when the stock is sold.Dividends are never taxed.