A loan made to the government that pays a fixed amount of interest at a certain time is a _____.A.bondB.hedge fundC.stockD.savings account
Question
A loan made to the government that pays a fixed amount of interest at a certain time is a _____.A.bondB.hedge fundC.stockD.savings account
Solution
The correct answer is A. bond.
A bond is a loan made to the government or a corporation that pays a fixed amount of interest at a certain time. When you buy a bond, you are essentially lending money to the issuer of the bond. In return, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of the bond when it matures, or comes due.
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
Which of the following investment referred to as fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental)?*Bank DepositsCurrenciesMutual FundsStocks (Equity)Real EstateInsurance
Interest:A.is the cost of borrowing money.B.is the additional payment made by borrowers to lenders to convince them to delay their spending.C.depends on the supply and demand for loanable funds.D.is income for the households who loan money through financial intermediaries to firms for capital goods.E.All of these.
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.