Which of the Following Would Not Be Considered a Safe

question 123

Multiple Choice

Which of the following would not be considered a safe investment for a conservative investor?

• A)corporate bonds
• B)guaranteed investment certificates
• C)government bonds
• D)gemstones
• E)preferred stock

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Definitions:

Income Effect

Income effect describes the change in an individual's or economy's consumption patterns due to a change in real income.

Opportunity Cost

The cost of foregone alternatives, the value of the best alternative given up when a decision is made.

Wage Increases

Adjustments made to the salary of employees, typically to account for inflation, performance, or changes in the cost of living.

Leisure

Free time available to an individual excluding time spent on work, domestic activities, and essential needs.