Which of the following statements is correct?
A)Stocks,bonds,and deposits are all similar in that each provides a common medium of exchange.
B)Most buyers of stocks and bonds prefer those issued by large and familiar companies.
C)Banks charge borrowers a slightly lower interest rate than they pay to depositors.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

While stocks, bonds, and deposits all involve financial instruments, only deposits can be considered a common medium of exchange. Most buyers of stocks and bonds do tend to favor large and familiar companies because they are seen as more stable and dependable. Banks typically charge borrowers a higher interest rate than they pay to depositors, in order to make a profit.

Which of the Following Statements Is Correct