What feature distinguishes the asset class, BONDS, from the asset class, CASH, according to the definitions used in this book?
A)All cash assets are risk-free; most bonds are not.
B)Cash assets are all backed by the U.S. government, but bonds may be issued by corporations and are not guaranteed by the U.S. government.
C)Bonds are debt instruments while cash is equity.
D)Bonds are longer-term debt instruments than cash assets.

Question

Quizplus · Accepted Answer

Bonds are indeed longer-term debt instruments compared to cash assets, which are typically held for immediate transactions or short-term needs. Cash assets are considered highly liquid and are not issued with a term, unlike bonds which have a specified term before maturity.

What Feature Distinguishes the Asset Class, BONDS, from the Asset