Answer the following statements true (T) or false (F)
1. Bonds issued by the Federal government are riskier than bonds issued by corporations.
2. The key difference between bonds and stocks is that stocks' income streams are more predictable than those of bonds.
3. Stocks represent a debt, and buyers of stock expect to earn interest.
4. An investment's rate of return is positively related to the price paid for it.
5. Stock investors can earn a return from stocks only in the form of dividends.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
5. FALSE
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All of the following means were used to reduce problems associated with the circulation of commercial bank notes except:
a. a pledge by the Treasury to accept all bank notes issued by state-chartered banks. b. anti-counterfeiting associations formed by commercial banks. c. bank note reporters and counterfeit detectors, such as Thompson's Reporter and Hodges' Bank Note Safeguard. d. note brokers who bought and sold commercial bank notes.
A point outside the production possibilities frontier
a. represents unemployment of resources b. represents full employment of resources c. would not represent an efficient combination of goods d. cannot be reached using the available technology e. is less desirable than one that lies inside the frontier