The Quality of Your Credit Rating Is Maintained by

question 117

Multiple Choice

The quality of your credit rating is maintained by

• A)only using cash to make purchases.
• B)making credit payments early.
• C)seldom questioning billing errors.
• D)using multiple credit cards.
• E)meeting credit obligations as contracts require.

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Definitions:

Price Securities

Price securities involve determining the market value of financial instruments such as stocks, bonds, or derivatives based on supply and demand.

Asset Allocation

The process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.

Portfolio Construction

The process of selecting a mix of assets tailored to an investor’s financial goals, risk tolerance, and investment horizon.

Debt Securities

are financial instruments representing money borrowed that must be repaid, typically including features such as fixed interest rates and maturity dates, examples include bonds and notes.