Question

A government bond is NOT as liquid as cash because the bond:

A) can be exchanged only for the goods or services produced by the company that issued the bond.
B) cannot be converted to spendable dollars either until it matures or is sold to another investor.
C) always has a face value less than its actual value.
D) must be exchanged for a stock certificate before it can be converted to spendable funds.

Answer 1

Option b

Step-by-step explanation:

In simple words, A government bond reflects a government-issued debt, which is offered to buyers to finance government expenditure. The US Federal reserve is selling the government bonds over the year throughout listings.

Any selling of Treasury bonds throughout the secondary sector. Professional shareholders may purchase or sell previously issued bonds through such a platform with a company or broker operating with it.