A saver who chooses securities as a savings medium and desires maximum safety of principal buys:
A) public utility stocks
B) corporate stocks
C) high-grade corporate bonds
D) government bonds

Question

Quizplus · Accepted Answer

Government bonds are considered the safest investment as they are backed by the government's ability to tax and print money, so the likelihood of default is very low. Public utility and corporate stocks are considered riskier as their value can fluctuate based on market conditions and company performance. High-grade corporate bonds are considered safer than lower grade corporate bonds, but still carry more risk than government bonds.

A Saver Who Chooses Securities as a Savings Medium and Desires