Knowee
Questions
Features
Study Tools

A loan made to the government that pays a fixed amount of interest at a certain time is a _____.A.stockB.savings accountC.hedge fundD.bond

Question

A loan made to the government that pays a fixed amount of interest at a certain time is a _____.

A. stock
B. savings account
C. hedge fund
D. bond

🧐 Not the exact question you are looking for?Go ask a question

Solution

The answer is D. bond.

Here's why:

A bond is a type of investment that involves lending money to an entity (typically a corporation or government) in exchange for periodic interest payments plus the return of the bond's face amount when it matures.

A. Stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

B. A savings account is a deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.

C. A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques.

So, the correct answer is D. bond.

This problem has been solved

Similar Questions

It is a loan taken at a certain rate of interest for a definite time period and repaid on maturity.a.Bondsb.Notes payablec.Interest payabled.Taxes payable

The bond market is also known as the _____a.debt marketb.fixed income marketc.credit marketd.all of the above

When the Central Bank buys government securities, it is implementing ___ policySelect one:a. Interest Ratesb. Government Expendituresc. Fiscald. Monetary

Fill in the Blank QuestionFill in the blank question.A loan backed by collateral, something valuable like property, is called a loan.

Fill in the Blank QuestionFill in the blank question.A mortgage bond is a corporate bond secured by various of the issuing .

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.