Suppose that you decide to purchase either stocks or bonds of a particular corporation and you also prefer to receive some returns from the securities every year. Which should you buy - stocks or bonds? Why?
What will be an ideal response?
You should buy bonds because you would receive coupons payments each year from holding the bonds whether the corporation makes profits or not while there is no guarantee for any payment for holding stocks.
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Perfect competition implies that
A) there are many firms in the market. B) all firms are price takers. C) all firms are producing the same identical product. D) All of the above answers are correct.
The "rational expectations revolution" refers to a substantial change in the thinking of ________
A) households and businesses B) policy makers C) macroeconomists D) elected officials
Net unilateral transfers would appear in a nation's
A) current account. B) capital account. C) official reserve transaction account. D) financial account.
The last few years of the 1990s in the United States were characterized by:
A. low inflation and high unemployment. B. stagflation. C. low inflation and low unemployment. D. a high misery index.