A security experiencing little or no loss in value over time is said to have a ________.
A) safety of return
B) safety of principal
C) safety of maturity
D) risk of payments

Question

Quizplus · Accepted Answer

Safety of principal refers to a security that maintains its value or has low risk of loss over time, providing investors with the assurance that their initial investment will not decrease in value. Safety of return refers to a guaranteed return on investment, and safety of maturity refers to a security that will reach its maturity date and provide the investor with the principal amount invested. Risk of payments refers to the possibility of a borrower being unable to make interest or principal payments on a debt security.

A Security Experiencing Little or No Loss in Value Over