5
InstructionMultiple Choice

Stocks vs. Bonds

Question 5 • ****Spring 2026 Financial Math - MA2007 MQS21QXV

Which of the following statements about length of investment is correct?

Answer
A
Bonds tend to be better long-term investments than stocks because bonds are unlikely to lose their value.
B
Stocks tend to be better long-term investments than bonds because bonds do not have the same growth potential that stocks do.
C
Bonds tend to be better long-term investments than stocks because bonds, unlike stocks, are guaranteed to keep up with inflation.
D
Stocks tend to be better long-term investments than bonds because stocks can be bought and sold more readily than bonds.

Explanation

Stocks tend to be better long-term investments because they generally have greater growth potential than bonds. Bonds can provide steadier income, but their returns may not grow as much over time. Bonds also are not guaranteed to keep up with inflation, so choice C is incorrect.

AI-written and checked against the verified answer.

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