Which of the following statements about stocks and bonds is true?
A) Stocks pay interest, while bonds pay dividends.
B) One can lose with stocks but not with bonds.
C) The U.S. federal government issues bonds but not stocks.
D) Bonds are long-term, while stocks are short-term investments.

Question

Quizplus · Accepted Answer

The U.S. federal government issues bonds (such as Treasury bonds) to finance its debt, but it does not issue stocks. Stocks represent ownership in a company, while bonds are a form of debt investment.

Which of the Following Statements About Stocks and Bonds Is