US Government Bonds Are Considered a Secure Investment Because

question 311

Multiple Choice

U.S. government bonds are considered a secure investment because

• A) the interest rates are protected from inflation and tied to the consumer price index.
• B) they are backed by the full faith and credit of the federal government.
• C) the interest rates are higher than for corporate bonds of equal duration.
• D) if they are lost or stolen the federal government promises to replace them when the proof of purchase is provided.

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Definitions:

Brushes

Components made of conductive material that transmit electrical current between stationary wires and moving parts, often found in motors and generators.

Commutator

A rotary electrical switch in certain types of electric motors and generators that periodically reverses the direction of current flow through the rotor.

AC Generator

An alternator in a vehicle that converts mechanical energy into alternating current electricity to power electrical systems.

Diodes

Semiconductor devices that allow current to flow in one direction, often used in electronics to rectify, switch, or modulate signals.