USA HISTORY

Detailed explanation-1: -Originally, they were called defence bonds and first appeared in 1917 in the form of Liberty Bonds which were used to help finance the American government’s participation in the First World War. The government was able to raise USD 21.5 billion dollars from the sale of these bonds.

Detailed explanation-2: -President Roosevelt settled on two major means of raising money: increased taxes and borrowing, through the sale of massive amounts of war bonds. Besides paying for the enormous costs of war, these measures would remove excess wages and other spendable money in a time of shortages, helping to keep a lid on inflation.

Detailed explanation-3: -Roosevelt by Treasury Secretary Henry Morgenthau. The bonds sold at 75 percent of their face value in denominations of $25 up to $10, 000, with some limitations. The war bonds actually were a loan to the government to help finance the war effort.

Detailed explanation-4: -War Bonds: War Bonds are issued by any government to raise funds in cases of war.

Detailed explanation-5: -War bonds are debt sold by the government to fund military operations. Nations often market these bonds not only as investment opportunities, but also as a chance to show patriotism.