Final answer:
Liberty Bonds were introduced during World War I to help finance the war effort and were sold to the American public as patriotic investments with a guaranteed repayment and interest.
Step-by-step explanation:
Liberty Bonds, also known as war bonds, were introduced during World War I as a means to finance the war effort. This makes option b) the correct answer. The Liberty Loan Act enabled the federal government to issue Liberty Bonds to garner support from the American public to fund the war effort and encourage economic investment. These bonds symbolized a patriotic investment that not only helped to finance a significant portion of the United States' wartime expenses but also provided citizens with a secure financial investment that guaranteed repayment with interest.
During World War II, the U.S. government continued this approach, raising over $185 billion through war bond sales. In promoting these bonds, the government enlisted celebrities and used vivid marketing campaigns, connecting the war effort with the personal financial contribution of its citizens.