What is a key characteristic of government bonds that makes them appealing to investors?

Understanding Bonds and Their Risks

Interactive Video
•
Business
•
9th - 10th Grade
•
Hard

Patricia Brown
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Tax-free income
Low risk
Short maturity period
High returns
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How do bonds function in terms of government financing?
They are a type of government loan
They are a form of tax
They are a form of government spending
They are a government grant
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the purpose of Liberty Loans during World War I?
To fund infrastructure projects
To increase exports
To support the war effort
To reduce taxes
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a savings bond's main feature that contributes to its safety?
It can be sold anytime
It is tax-free
It is backed by the government
It offers high interest rates
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What event could prevent you from getting your money when a savings bond matures?
A change in interest rates
A bank failure
A stock market crash
A government default
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a common reason for the U.S. government to issue new bonds?
To reduce inflation
To pay back existing bondholders
To decrease spending
To increase taxes
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a potential risk when selling bonds in the secondary market?
Immediate maturity
Fixed interest rates
Variable bond value
Guaranteed profit
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