Which of the Following Securities Is an Appropriate Investment to Include

question 13

Multiple Choice

Which of the following securities is an appropriate investment to include in the marketable securities account?

• A)Common stock
• B)Long-term corporate bonds
• C)Preferred stock
• D)Mortgages
• E)Treasury bills

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Definitions:

Marginal Benefit

The increase in utility or enjoyment an individual gets by consuming an additional unit of a good or service.

Marginal Cost

The extra expense associated with creating an additional unit of a product or service.

Streetlights

Outdoor lighting fixtures installed along streets to provide illumination during the night to enhance visibility and safety.

Marginal Social Benefit

The additional benefit to society from consuming or producing one more unit of a good or service.