USA HISTORY

THE AMERICAN REVOLUTION 1775 1783

GEORGE WASHINGTONS LEADERSHIP AT TRENTON SARATOGA VALLEY FORGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is a loan given to a government called?
A
a bond
B
a certificate of deposit
C
a Roth IRA
D
a tariff
Explanation: 

Detailed explanation-1: -A government bond is a type of debt-based investment, where you loan money to a government in return for an agreed rate of interest. Governments use them to raise funds that can be spent on new projects or infrastructure, and investors can use them to get a set return paid at regular intervals.

Detailed explanation-2: -A bond is a loan to a company or government. It pays investors a fixed rate of return.

Detailed explanation-3: -1.1 A bond is a debt instrument in which an investor loans money to an entity (typically corporate or government) which borrows the funds for a defined period of time at a variable or fixed interest rate.

Detailed explanation-4: -Treasury bills, also known as T-bills, are short term government bonds. They are issued for maturity within one year. The government issues these bonds in three categories, i.e. 91 days, 182 days and 364 days. The investors do not get coupon payments.

Detailed explanation-5: -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.

There is 1 question to complete.