Having Money Taken Automatically from Your Paycheck and Put into a Mutual

question 76

Multiple Choice

Having money taken automatically from your paycheck and put into a mutual fund is an example of

• A) an automatic investment plan.
• B) an automatic reinvestment plan.
• C) a systematic withdrawal plan.
• D) a conversion privilege.
• E) none of these.

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Definitions:

Face Value

The nominal value stated on a financial instrument, such as a bond or stock, representing its legal value at issuance or redemption.

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is issued at a discount from its face value.

Purchase Price

The amount of money paid to buy a security, asset, or property.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock.