What Feature Distinguishes the Asset Class, BONDS, from the Asset

question 1

Multiple Choice

What feature distinguishes the asset class, BONDS, from the asset class, CASH, according to the definitions used in this book?

• A)All cash assets are risk-free; most bonds are not.
• B)Cash assets are all backed by the U.S. government, but bonds may be issued by corporations and are not guaranteed by the U.S. government.
• C)Bonds are debt instruments while cash is equity.
• D)Bonds are longer-term debt instruments than cash assets.