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What is the general investment option that allows you to loan money to a corporation without receiving

any voting or ownership rights, but after maturity of the loan, you get paid back with interest?
O
A. bond investment
O
B. certificate of deposit savings account
O
C. mutual fund
D. money market trading​

2 Answers

4 votes

Answer: A - Bond investment

Step-by-step explanation: BECAUSE IT IS

User Fsasvari
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3 votes

Answer:

A: bond investment

Explanation:

A bond investment is a fixed income investment in form of a loan given by an investor to cooperate organisations or government.

Mutual fund is a professionally managed investment fund that gathers money from many investors to purchase securities I.e a tradable financial asset.

Certificate of deposit savings is a time deposit where financial products of banks, credit unions or thrift companies are sold to investors. Certificate of deposit differs from savings account since it has a fixed terms with fixed interest rate and it must be held until maturity before an investor will be able to withdraw his funds.

On the other hand, money market refers to trading in short term debt investment. At retail level, it involves money market mutual funds bought by individuals investors and money market accounts opened by bank customers while at wholesale level, it is usually a large volume investment or trades between institutions and traders. Money market has a high degree of safety but the interest return rate is small compared to most investment options.

User Dmanners
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