What is one difference between stocks and bonds?
A) Bonds are purchased at a bank, while stocks are purchased through the federal government.
B) Bonds earn a higher rate of return than stocks.
C) Stocks earn a higher rate of return than bonds.
D) Stocks represent partial ownership in a firm, while bonds do not.
D
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A rise in foreign productivity tends to __________ foreign prices and causes the dollar to __________ relative to the foreign currency
A) raise; appreciate B) raise; depreciate C) lower; appreciate D) lower; depreciate
The prices of stocks and bonds move
a. in opposite directions to the Fed's interest rate target b. in opposite directions to the spending patterns of Congress c. in similar directions to the Fed's interest rate targets d. in similar directions to the spending patterns of Congress e. whenever the Open Market Committee threatens a change in the money supply