Which of the Following Is Not a True Statement

question 32

Multiple Choice

Which of the following is not a true statement?

• A)When choosing an investment, it is not necessary to consider the risk factor.
• B)During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.
• C)The interest rate risk associated with investments in bonds is the result of changes in the interest rates in the economy.
• D)The risk of business failure is associated with investments in common stock, preferred stock, and corporate bonds.
• E)The price of stocks, bonds, and other investments may fluctuate because of the behavior of investors in the marketplace.

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Definitions:

Socialist Party

Political party demanding public ownership of major economic enterprises in the United States as well as reforms like recognition of labor unions and woman suffrage; reached peak of influence in 1912 when presidential candidate Eugene V. Debs received over 900,000 votes.

U.S. Soldiers

Members of the United States Armed Forces, particularly the Army, who serve and protect the country through military service.

World War I

A major international conflict from 1914 to 1918, involving many of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Central Powers.