ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Putting money into a piggy bank at home.
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Saving spare change and using it to buy snacks.
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Buying a U.S. savings bond.
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Buying groceries for the family.
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Detailed explanation-1: -We currently offer 2 types of savings bonds: EE bonds and I bonds. Use this table to see the features of both side by side. How do the bonds earn interest? EE bonds you buy now have a fixed interest rate that you know when you buy the bond.
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: -Let’s say John Smith buys a treasury bond from the U.S. government for the face value of $10, 000. The term of the bond is 10 years, with a coupon rate (or interest rate) of 4.25%. Every six months, John will receive a payment of $212.50 from the government for 10 years.
Detailed explanation-4: -Go to your TreasuryDirect account. Choose BuyDirect. Choose whether you want EE bonds or I bonds, and then click Submit. Fill out the rest of the information.