What Is One Difference Between Stocks and Bonds

question 72

Multiple Choice

What is one difference between stocks and bonds?

• A)Bonds earn a higher rate of return than stocks.
• B)Stocks earn a higher rate of return than bonds.
• C)Bonds are purchased at a bank, while stocks are purchased through the federal government.
• D)Stocks represent partial ownership in a firm, while bonds do not.
• E)Stocks represent a guarantee of future payment, while bonds do not.

---

Definitions:

Federalists

Supporters of the ratification of the U.S. Constitution, advocating for a strong central government to unite the states and manage national issues effectively.

Anti-federalists

Opponents of the U.S. Constitution’s ratification, fearing that too strong a central government would endanger people's liberties and rights.

Representation

The act of electing officials who are charged with acting on behalf of a larger group, reflecting their interests in a legislative or governmental setting.

Congress

The bicameral legislature of the federal government of the United States, consisting of two chambers: the Senate and the House of Representatives.