Which of the following ﬁnancial assets is considered to be essentially risk-free?
A) gold
B) stock in Fortune 500 companies
C) real estate
D) short-term U.S. government bonds

Question

Quizplus · Accepted Answer

Short-term U.S. government bonds are considered essentially risk-free because they are backed by the full faith and credit of the U.S. government, which is considered to be one of the safest borrowers in the world. Gold, stocks, and real estate all carry varying degrees of risk.

Which of the Following ﬁNancial Assets Is Considered to Be