Recent Proposals to Allow the Social Security Trust Fund to Invest

Multiple Choice

Recent proposals to allow the Social Security trust fund to invest in the stock market (instead of buying government bonds) are based on the premise that

A) the returns to stocks are higher than the returns to bonds.
B) the returns to stocks aren't as risky as the returns to bonds.
C) the transactions costs for investing in stocks are lower than the transactions costs for investing in bonds.
D) stocks are more liquid than bonds.