Asked by Stephine Browning on May 16, 2024
Verified
Suppose you own $175,000 worth of personal property,$15,000 in U.S.government bonds;a $20,000 savings account,a $50,000 CD,and $5,000 of California Edison stock.If California Edison goes bankrupt,the most you could lose is
A) $5,000.
B) $75,000.
C) $90,000.
D) $265,000.
Personal Property
Movable property that is not attached to real estate, including vehicles, furniture, and personal belongings.
U.S. Government Bonds
Debt securities issued by the United States Department of the Treasury to fund federal government operations and obligations, considered low-risk investments.
Savings Account
A deposit account held at a financial institution that provides principal security and a modest interest rate.
- Comprehend the divergences across a range of investment options and fiscal tools.
Verified Answer
SR
SIMONE ROYALMay 21, 2024
Final Answer :
A
Explanation :
The question is asking for the most amount of money that could be lost if California Edison goes bankrupt. Since the other assets listed are not related to California Edison, they will not be affected if the company were to go bankrupt. Therefore, the most that could be lost is the value of the California Edison stock, which is $5,000.
Learning Objectives
- Comprehend the divergences across a range of investment options and fiscal tools.