Government Bonds
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Questions and Answers

What type of financial instrument is typically issued by national governments?

  • Bond (correct)
  • Derivative
  • Mutual fund
  • Stock
  • Which of the following financial instruments is considered low-risk?

  • Bond (correct)
  • Futures
  • Option
  • Stock
  • What is the primary purpose of bonds issued by national governments?

  • To provide insurance against risk
  • To raise capital for private companies
  • To finance government activities (correct)
  • To speculate on market fluctuations
  • What characteristic is often associated with bonds issued by national governments?

    <p>Low risk, low return</p> Signup and view all the answers

    Which entity is most likely to issue bonds?

    <p>National government</p> Signup and view all the answers

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