WORLD HISTORY

Detailed explanation-1: -These types of bonds are known as war bonds.

Detailed explanation-2: -A war bond is an initiative by a government to fund military operations and spending by issuing debt for the public to purchase. The public may buy these bonds out of a feeling of patriotic duty, or other emotional appeals.

Detailed explanation-3: -The Government also raised money by selling “Liberty Bonds.” Americans bought the bonds to help the Government pay for the war.

Detailed explanation-4: -During World War I (WW1), war bonds were made available to retail investors, as well as wholesale investors, with the purpose of raising enough capital to finance the governments’ increased military expenditures. There was a strong propaganda campaign designed to appeal to the nation’s sense of patriotism.

Detailed explanation-5: -War bonds are an investment instrument issued by the government to raise money for financing military activities. They were commonly used during World war I and II. They produce comparatively lesser yield than commercial bonds and generally utilize the patriotic sentiments of the public to be purchased.