ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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corporate bonds
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stocks
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U.S. Treasury bonds
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mutual funds
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Detailed explanation-1: -T-bills are considered the safest possible investment and provide what is referred to as a “risk-free rate of return, ” based on the credit worthiness of the United States of America.
Detailed explanation-2: -Treasury bonds are considered low-risk investments that are generally risk-free when held to maturity, since being backed fully by the U.S. government makes the odds of default extremely low. Relative to higher-risk securities, like stocks, Treasury bonds have lower returns.
Detailed explanation-3: -The three types of bond funds considered safest are government bond funds, municipal bond funds, and short-term corporate bond funds.
Detailed explanation-4: -If you’re seeking low-risk investments, your first choice should always be U.S. Treasury securities. Backed by the full faith and credit of the U.S. government, Treasurys are the safest investment asset on earth.
Detailed explanation-5: -High-yield savings accounts. Series I savings bonds. Short-term certificates of deposit. Money market funds. Treasury bills, notes, bonds and TIPS. Corporate bonds. Dividend-paying stocks. Preferred stocks. More items •01-Mar-2023