ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
You are given certificates issued by the US Treasury Department. What type of investment have you been given?
A
Corporate bond
B
U.S. savings bond
C
Municipal bond
D
James Bond
Explanation: 

Detailed explanation-1: -U. S. savings bonds are Buy once. Earn interest for up to 30 years.

Detailed explanation-2: -We sell Treasury Bonds for a term of either 20 or 30 years. Bonds pay a fixed rate of interest every six months until they mature. You can hold a bond until it matures or sell it before it matures. EE Bonds, I Bonds, and HH Bonds are U.S. savings bonds.

Detailed explanation-3: -Savings bonds are debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs. U.S. savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.

Detailed explanation-4: -U.S. Treasury bonds are long-term debt securities. They mature between 20 and 30 years and pay interest every six months. When you purchase a Treasury bond, you are loaning money to the U.S. federal government. Treasury bonds are a low-risk investment that pays a fixed return and offers tax advantages.

There is 1 question to complete.