Which of the Following Is True of the Comparison Between

question 21

Multiple Choice

Which of the following is true of the comparison between equity securities and debt securities?

• A) Debt securities represent stock ownership in a company whereas equity securities represent a credit relationship with the company.
• B) Equity securities may earn dividend revenue whereas debt securities earn interest revenue.
• C) Neither debt securities nor equity securities mature at a stated date.
• D) Both debt securities and equity securities pay interest.

---

Definitions:

Predicate

The part of a sentence or clause containing a verb that states something about the subject.

Spreading Activation Model

A cognitive theory suggesting ideas in the brain are connected in a network, and thinking about one concept can trigger related concepts.

Vegetable

A plant or part of a plant used as food, typically consumed for its savory qualities in the culinary context.

Ambiguous Drawing

A type of visual stimuli that can be interpreted in multiple ways, illustrating the brain's processing of ambiguous information.