17
QuizMultiple Choice

Unit Test — Unit test

Question 17 • $2526: Full: 2102320: Economics HONORS: NEW CREDIT

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, which backs their repayment. They earn interest over time, so their value increases when held according to the bond’s terms. Commercial banks may sell savings bonds but do not issue or guarantee them, and savings bonds are not specifically mortgage programs for first-time buyers.

AI-written and checked against the verified answer.

Previous
Next