Recent Proposals to Allow the Social Security Trust Fund to Invest

question 9

Multiple Choice

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 are higher than the returns to bonds.
• B)the returns to stocks aren't as risky as the returns to bonds.
• C)the transactions costs for investing in stocks are lower than the transactions costs for investing in bonds.
• D)stocks are more liquid than bonds.

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Definitions:

Organic Chemistry

The branch of chemistry that studies the structure, properties, composition, reactions, and synthesis of compounds that contain carbon.

Synthesis

Synthesis refers to the process of combining two or more components to produce a compound or complex whole, a common concept in chemistry for creating new substances.

Pharmaceuticals

Medicinal drugs manufactured for use in medical diagnosis, treatment, or prevention of diseases.

Lewis Theory

A concept in chemistry that explains chemical bonding based on the loss, gain, or sharing of electrons in the outermost shell of atoms or molecules.