Which of the Following Provides the Strongest Argument for Young

question 333

Multiple Choice

Which of the following provides the strongest argument for young people making regular payments into a retirement program that invests these funds in a diverse set of stocks?

• A) The prices of stocks tend to fluctuate more than the prices of bonds.
• B) Over short periods of time, variation in the real rate of return of stocks is greater than bonds.
• C) When held over lengthy periods like 30 or 40 years, historically, the rate of return on stocks has been both higher and less variable than that of bonds.
• D) Lower interest rates will lead to higher bond prices.

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Definitions:

Wage Subsidy

A government incentive provided to employers to encourage them to hire more workers by partially subsidizing the wages of employees.

Nonpreferred Workers

Employees or job candidates who may be considered less desirable by employers due to various factors such as lack of experience, education, or specific skills.

Wage Rate

The amount of money paid to an employee per unit of time, such as an hour or month, for labor or services rendered.

Employer Prejudice

Bias or discrimination by employers towards certain groups of employees or potential employees based on non-work-related personal characteristics.