Wrong Answers Investments

Question 1

What are some facts about Series I bonds?

Answer 1

Series I bonds earn interest for up to 30 years.

Series I bonds accrue earnings based on a fixed RoR and the semiannual inflation rate.

The special tax benefits for education savings with Series EE bonds also apply to Series I bonds.

The difference between the purchase price and the redemption value is taxable interest (redeemed or matured).

Question 2

Series EE Bonds

Answer 2

Education savings benefits are typically only available to parents

Income phaseout for education savings benefits of EE bonds

Subject to federal not state/muni taxes

Question 3

FDIC insurance is per person, per titling, per bank

Answer 3

True

Question 4

An ETF is similar to…?

Answer 4

Mostly an open-end fund but could be a closed-end fund

Question 5

UIT

Answer 5

Self liquidates, can be traded on the secondary market

Once created, no new securities are purchased, and portfolio securities are rarely sold

Question 6

What can always be purchased at NAV?

Answer 6

No-load MF (no-load closed end fund)

Question 7

Can ETFs be bought on margin/sold short?

Answer 7

Yes

Question 8

What happens if an option is sold worthless?

Answer 8

Premiums received = STG

If an option expires worthless for income tax purposes, the option is considered sold an is treated as a short-term loss to the buyer