Question

Question:
What is one benefit of purchasing saving bonds?
A. Saving bonds are purchased from the government and guaranteed to increase in value.
B. Saving bonds are purchased from commercial banks and guaranteed to increase in value.
C. Saving bonds are short term investments backed by the government to protect from loss.
D. Saving bonds are long term investments created to help first time home buyers obtain a mortgage.

Answer 1

The benefit of buying saving bonds is that they are purchased from the government and guaranteed to increase the value.

What are saving bonds?

These are debt securities issued by the Treasury department, the purpose of which is to pay off government borrowing needs. The most common are I Bonds and Series EE Saving Bonds.

Therefore, saving bonds guarantee less risk to the investor as they are bonds that guarantee an increase in the value guarantee.

The correct answer is:

A. Saving bonds are purchased from the government and guaranteed to increase in value.

Find out more about saving bonds here:

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Answer 2

Answer:

A. Saving bonds are purchased from the government and guaranteed to increase in value.

Explanation: