Question

A U.S. Treasury bond issued by the federal government allows the government to
a) lend money
b)
put its money in a safe financial vehicle
c) invest money
d) borrow money

Answer 1

Answer:

D

Explanation:

When you buy a bond which is issued by the government, you are actually giving that money to the government, so after some years (differs for every bonds and can by for an year of 10 years) the government might give you $150 for a bond that you purchased for $100 two years ago. Government usually do this in the time of war, so they have enough capital.