Preferred Stock Is Similar to a Bond in the Following

question 122

Multiple Choice

Preferred stock is similar to a bond in the following way:

• A) Preferred stock always contains a maturity date.
• B) Both investments provide a stated income stream.
• C) Both contain a growth factor similar to common stock.
• D) Both provide interest payments.

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Definitions:

Aggregate Supply

The entirety of goods and services that economic entities intend to market within a particular period in an economic environment.

Expected Price Level

The anticipated average of prices for all goods and services in an economy over a future period.

Labor Contracts

Agreements between employers and employees or unions that define terms of employment, salaries, benefits, and working conditions.

Short-run Phillips Curve

A graphical representation showing the inverse relationship between unemployment rates and inflation rates in the short-term.