WORLD HISTORY

Detailed explanation-1: -A war bond is a debt security issued by a government to finance military operations during times of war or conflict. Because war bonds offered a rate of return below the market rate, investment was achieved by making emotional appeals to patriotic citizens to lend the government money.

Detailed explanation-2: -There were four Liberty Loan drives and a Victory Loan drive, which occurred after the armistice. By the end of the war, 20 million people had purchased Liberty Bonds. Seventeen billion dollars was raised through the sale of Liberty Bonds and $8.8 billion was raised through taxation.

Detailed explanation-3: -War Bonds are debt instruments (bonds) that are issued by governments to finance military operations and production in wartime. War bonds tend to appeal to the sense of patriotism in individuals, who even see their purchase as a civic duty.

Detailed explanation-4: -War bonds (sometimes referred to as Victory bonds, particularly in propaganda) are debt securities issued by a government to finance military operations and other expenditure in times of war without raising taxes to an unpopular level.

Detailed explanation-5: -For this war, the federal government relied on a mix of one-third new taxes and two-thirds borrowing from the general population. Very little new money was created. The borrowing effort was called the “Liberty Loan” and was made operational through the sale of Liberty Bonds.