A Saver Who Chooses Securities as a Savings Medium and Desires

question 82

Multiple Choice

A saver who chooses securities as a savings medium and desires maximum safety of principal buys:

• A) public utility stocks
• B) corporate stocks
• C) high-grade corporate bonds
• D) government bonds

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Definitions:

Novelty Cups

Cups designed with unique features or unusual designs, often used for promotional or gift purposes.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial losses, both big and small.

Reducing Risk

Strategies and actions taken to minimize potential losses or the likelihood of undesirable outcomes in investment, operational, and financial activities.