Question

______are loans to a company or government for a set amount of time they earn interest in are considered low-risk Investments

A:Derivatives
B:Stocks
C:Mutual Funds
D:Bonds

Answer 1

The answer is D) Bonds.

Explanation:

"A bond is a loan to a company or government. Just like a regular loan, a bond has a specific data when it gets paid back in full. You’ll receive periodic interest payments from the bond in the meantime.

A bond from a high-quality borrower – like the US government – is generally considered a low risk because it pays a fixed amount of interest each year, and when compared to stocks, the value is less likely to decline and the amount of a potential decline in value is lower as well."

- Info from Everfi

I also did the quiz.

Answer 2

I think the answer is B