In comparison to securities issued by the federal government,securities issued by provincial governments:
A) are significantly riskier.
B) are much less liquid.
C) yield slightly more than federal securities.
D) usually require the payment of higher commissions when purchased than federal securities.

Question

Quizplus · Accepted Answer

Securities issued by provincial governments are generally considered to be slightly riskier than federal securities due to the fact that provinces are not as financially stable as the federal government. However, they still offer a relatively low level of risk compared to other investments. Provincial securities also tend to yield slightly more than federal securities due to their slightly higher risk profile. The liquidity and commission requirements for both types of securities are not significantly different.

In Comparison to Securities Issued by the Federal Government,securities Issued