MAKING OF A NEW NATION 1776 1800
ALEXANDER HAMILTON
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You are indebted to the bank that issued the bonds.
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The federal government owes you money.
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You are lending money to the public.
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You will have to pay interest on the bonds.
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Detailed explanation-1: -The federal government finances its operation in part by selling various types of securities. All these securities are backed by the full faith and credit of the United States government.
Detailed explanation-2: -The national debt is the total amount of money the federal government owes. This money is owed to anyone who holds bonds.
Detailed explanation-3: -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.
Detailed explanation-4: -Treasury bonds are considered risk-free assets, meaning there is no risk that the investor will lose their principal. In other words, investors that hold the bond until maturity are guaranteed their principal or initial investment.