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
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.
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 .
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.