Answer: When you buy a U.S. Savings Bond you are loaning money to
the government.
Explanation:
Savings bond means the debt securities which the government issues to the public in order to borrow money for government funds. US savings bond are a safe financial instrument that people can consider investing. On buying a bond you loan money to the government and the government pays back interest for the borrowed money. The bond can be sold on its maturity to the government.
This is also a tax free on the interest that is received. These bonds can be purchased in the online electronic form.
