Which of the Following Securities Is the Riskiest to Investors

question 18

Multiple Choice

Which of the following securities is the riskiest to investors?

• A)Floating rate notes.
• B)Income bonds.
• C)Treasury bills.
• D)First mortgage bonds.
• E)Common stock.

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Definitions:

Consumer Surplus

The distinction between the total cost consumers are willing to offer for a good or service and the amount they eventually pay.

Surplus II

An excess amount of a product or resource compared to the demand, often resulting in lower prices.

Surplus III

An excess of production or supply over demand, often referring to goods in a market that exceed buyer requirements.

Consumer Surplus

The distinction between the price consumers are inclined to pay for a product or service and what they ultimately pay.