Which of the Following Is a Difference Between Stocks and Bonds

question 11

Multiple Choice

Which of the following is a difference between stocks and bonds?

• A) Stocks are issued for a fixed period; bonds are not.
• B) Stocks pay interest; bonds pay dividends.
• C) Bond payouts are more predictable than payouts from stocks.
• D) Bonds represent ownership; stocks represent debt.

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Definitions:

Consumer Surplus

The discrepancy in the total money consumers are willing to invest in a good or service compared to what they really pay.

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the total quantity demanded by all consumers in the market.

Magazine Circulation

The total number of copies of a magazine that are distributed to subscribers and retailers within a specific period.

Consumer Surplus

The distinction between the aggregate amount consumers are inclined and capable of paying for a service or product and what they actually disburse.