12
QuizMultiple Choice

Banking: How to Manage Your Money — Quiz

Question 12 • Economics

What is one benefit of purchasing saving bonds?

Answer
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.

Explanation

Savings bonds are issued by the U.S. government, and their value grows over time according to the bond’s terms. This makes C correct: they are purchased from the government and are guaranteed to increase in value. They are not specifically designed to help first-time home buyers, as B claims.

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