Exercise 2. Directions: True or False. On the space provided before each number, write T if the statement is True and F if the statement is false.

1. Corporate bonds are long-term debt instruments issued by corporations.

2. A typical savings account provides a low fixed rate of return but provides the convenience of availability.

3. Treasury bills and bonds are issued by banks and corporations.

4. Investors would only need to look for a stockbroker in order for them to purchase or sell shares in the stock market.

5. Insurance and bonds are both equity investments.

6. Stock is the riskiest of all assets.

7. Just like a time deposit, bonds can also be pre-terminated by the investor.

8. If you invest in mutual fund, it's not necessary for you to pay management fees.

9. If you invest in Real Estate, in maintenance is needed to preserve its value.

10. Every investment is associated with risk.

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