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  CDs and Investing Basics   Chapter 3: Investing in bonds
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Investing Basics: Chapter 3 quiz

If you think you've mastered the material in this chapter, take our quiz. After you click the ''submit'' button, the answers will appear below.

  1. Why would you choose the I-bond over the Series EE Bond?
    If inflation was a concern.
    Because it shows patriotism during wartime.
    The interest earned is free from federal, state and local taxes.

  2. True or false: Treasury bills mature in two to 10 years.
    True
    False

  3. How do TIPS protect against inflation?
    The investor is guaranteed to receive the principal even if deflation squashes the value of the security.
    The principal is adjusted semiannually based on the consumer price index with interest rate payments based on the adjusted principal.
    Both of the above
    Neither ''a'' or ''b''

-- Posted: May 1, 2006
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 RESOURCES
Calculate your CD earnings
401(k) savings calculator
When it's OK to tap your IRA
 TOP INVESTING STORIES
Fame & Fortune: Monica Seles
10-year Treasury-buyer beware
9 cash-saving strategies that pay big bucks

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CDs and Investments
Compare today's rates
NATIONAL OVERNIGHT AVERAGES
1 yr CD 0.95%
2 yr CD 1.15%
5 yr CD 1.75%
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