A security experiencing little or no loss in value over time is said to have ________.
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 the protection of the original investment amount, i.e. the security does not lose value over time. This is different from safety of return, which relates to the likelihood of receiving a predictable and consistent return on investment, and safety of maturity, which refers to the security's ability to maintain its value until maturity. Risk of payments is not a relevant concept in this context.

A Security Experiencing Little or No Loss in Value Over