Which of the Following Differentiates a Bond from a GIC

question 10

Multiple Choice

Which of the following differentiates a bond from a GIC? I.Only bonds are subject to price risk.
II) Only bonds can generate a capital gain.
III) Only bonds are marketable securities.

• A)I and II, only
• B)II and III, only
• C)I and III only
• D)I, II and III
• E)I only

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Definitions:

Trading Debt Securities

Refers to the buying and selling of debt securities, such as bonds, in the financial market for short-term profit.

Long-term Assets

Assets that are expected to provide economic benefits to a company for a period longer than one year, such as real estate or equipment.

Exchange Rate

The price of one currency expressed in terms of another currency, determining how much of one currency can be exchanged for another.