Recent proposals to allow the Social Security trust fund to invest in the stock market (instead of buying government bonds) are based on the premise that
A. the returns to stocks aren't as risky as the returns to bonds.
B. the returns to stocks are higher than the returns to bonds.
C. stocks are more liquid than bonds.
D. the transactions costs for investing in stocks are lower than the transactions costs for investing in bonds.
Answer: B
You might also like to view...
Promotional pricing would best be categorized as a form of:
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) no price discrimination.
The balance of trade is the value of a nation's ____________
a. goods and service exports times goods and service imports b. goods exports subtracted from goods imports c. goods imports subtracted from goods exports d. net goods imports plus net capital inflows
Measured as a share of national income, government expenditures on income transfers during the last 70 years have
a. grown rapidly. b. declined substantially. c. been virtually unchanged. d. increased throughout much of that period, but they have declined substantially since 1980.
"Because monetary policy must be approved by the president of the United States, the president is chair of the Federal Open Market Committee." Analyze the previous statement—is it correct or incorrect?
What will be an ideal response?