ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Professionally managed portfolios made up of stocks and other investments.
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A kind of savings account
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A bond is an “IOU, “ certifying that you loaned money to a government or corporation and outlining the terms of repayment.
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None of the above
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Detailed explanation-1: -A bond is a security that pays a known income (the coupon) for a given period of time (the term) and repays the face value of the security at maturity. A bond is simply a loan or an IOU from the investor to the government, bank or corporation (known as the issuer).
Detailed explanation-2: -A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments.
Detailed explanation-3: -An “I owe you” (IOU) is a document that records the existence of a debt. It is typically considered an informal agreement and is less likely to be legally binding than a formal contract.
Detailed explanation-4: -abbreviation for I owe you: a written promise to pay back a debt: Here’s an IOU for the fiver you lent me.
Detailed explanation-5: -A promissory note is a written promise from one person or business to pay another. Also known as loan agreements or IOUs, these documents lay out the terms and conditions of a loan and ensure that the agreement is legally enforceable.