BUSINESS ADMINISTRATION
BUSINESS POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Loan money to the government
|
|
|
Borrow money from a savings and loan
|
|
|
Donate money for special government projects
|
|
|
Pay for your child’s education.
|
Detailed explanation-1: -When you buy a government bond, you lend the government an agreed amount of money for an agreed period of time. In return, the government will pay you back a set level of interest at regular periods, known as the coupon. This makes bonds a fixed-income asset.
Detailed explanation-2: -When you buy a U.S. savings bond, you lend money to the U.S. government. In turn, the government agrees to pay that much money back later-plus additional money (interest).
Detailed explanation-3: -Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you’re giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.
Detailed explanation-4: -A bond is a loan to a company or government. It pays investors a fixed rate of return.
Detailed explanation-5: -A government bond is a debt instrument issued by the central and state government of the country to finance their needs and also to regulate the money supply. When the government requires funds for infrastructure development and for financing government spending such bonds are often the answer.