Which of the following differentiates a bond from a GIC? I.Only bonds are subject to price risk.
II)Only bonds can generate a capital gain.
III)Only bonds are marketable securities.
A)I and II, only
B)II and III, only
C)I and III only
D)I, II and III
E)I only

Question

Quizplus · Accepted Answer

I, II, and III differentiate a bond from a Guaranteed Investment Certificate (GIC). Bonds are subject to price risk due to market fluctuations, can generate capital gains if sold at a higher price than purchased, and are marketable securities, meaning they can be bought and sold in the financial markets. GICs, on the other hand, have a fixed interest rate and maturity date, and are not subject to market fluctuations in the same way, nor are they typically sold in the open market.

Which of the Following Differentiates a Bond from a GIC