Regarding hardware and software tokens, which statement is true?

Hardware and software tokens both support "something you have" factor authentication. Smartcards, USB sticks, and one-time-use password generators are examples of common hardware tokens. Generally, software tokens are programs that produce a temporary password. Because providing a hardware token to a large number of users is expensive, software tokens are considered a less expensive option. Hardware tokens may be more secure, but they are less practical and more expensive.