Which of the Following Reasons Explain Why Investors Purchase Bonds

question 55

Multiple Choice

Which of the following reasons explain why investors purchase bonds?

• A) To provide asset allocation
• B) To produce income for current financial needs
• C) To match maturity dates with future financial needs
• D) To have a conservative investment during an economic downturn
• E) Investors purchase bonds for all of these reasons.

---

Definitions:

Longitudinal Study

Research that follows the same subjects over a period of time, allowing for the examination of changes and developments.

Marijuana

A psychoactive drug derived from the Cannabis plant, used both recreationally and medicinally for its effects.

Metabolic Rate

The rate at which the body expends energy or burns calories, influenced by factors like body size, age, gender, and genetics.

Short-Term Memory

The capability to maintain a small volume of information in an immediate, available condition for a short time span.