ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Savings Bonds
|
|
|
T-Bills
|
|
|
Savings Accounts
|
|
|
CDs
|
Detailed explanation-1: -Bonds are debt instruments in which the investor loans money to an entity. The entity borrows money at a fixed interest rate for a specific time duration. Such an entity can be government, banks or corporates. Hence, when the government issues bonds, they are known as government bonds.
Detailed explanation-2: -A BLA or Bond Ledger Account means an account with RBI or an agency bank in which the Government securities are held in a dematerialized form to the credit of the holder.
Detailed explanation-3: -Government bonds are known as gilts in the UK and are an investment vehicle that provides a fixed rate of return until their expiry. Gilts are a loan from the bondholder to the government. The issuing government pays a fixed interest rate to the investor until the bond reaches its maturity date.
Detailed explanation-4: -The Bureau of the Fiscal Service, administers the public debt by issuing and servicing U.S. Treasury marketable, savings and special securities.