QUESTION 5 Compared to bonds, stocks offfer the holder O A. higher risk. O B. potentially high return. O C. all of the answers are correct. O D. ownership in a firm. QUESTION 6 Policy to reduce the budget deficits O A. reduces investment and so shifts the demand of loanable funds to the left. O B. increases public saving and so shifts the supply of loanable funds to the right. O C. reduces public saving and so shifts the supply of loanable funds to the left. O D. reduces private saving and so shifts the supply of loanable funds to the left. QUESTION 7 The bond market, the stock market and mutual funds are all part of the US O A. Federal Reserve B. banking system. O C. investment system O D. financial system. QUESTION 8 Which of the following is not a determinant of productivity?: O A. human capital . O B. natural resources per worker. O C. physical capital. D. the Dow Jones Industrial Average