Which Statement Is TRUE

question 100

Multiple Choice

Which statement is TRUE?

• A) One should avoid investing in bonds because they give lower returns than do stocks.
• B) If you need your money for something in 2 years, avoid putting it in stocks.
• C) Retirees should allocate more of their investments to stocks.
• D) Recent college graduates should allocate more of their money to bonds than to stocks.

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Definitions:

Three-party Instrument

A financial document involving three parties, typically referring to negotiable instruments where there is a drawer, drawee, and payee.

Relative Permanence

Pertains to the duration or stability of something compared with others, often indicating that it is more lasting or fixed but not permanent.

Requirements Of Negotiability

Legal criteria that a document must meet to be considered negotiable, enabling the transfer of the document to another party under commercial law.

Fixed Time For Payment

A specific date or period agreed upon for the repayment of a loan or fulfillment of a payment obligation.