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Questions and Answers
What type of financial instrument is typically issued by national governments?
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?
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?
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?
What characteristic is often associated with bonds issued by national governments?
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Which entity is most likely to issue bonds?
Which entity is most likely to issue bonds?
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