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:

Specific Purpose

An intention or objective designated for a particular activity, fund, or project, often stated to define its scope.

Conveyance

The legal process of transferring property, including real estate, from one party to another.

Quitclaim Deeds

A legal document transferring the grantor's interest in property without any warranty of title, often used between family members or in divorce settlements.

Grantor

In legal contexts, this refers to the individual or entity that creates a trust, conveys property, or grants a right.