Which of the Following Reasons Explain Why Investors Purchase Bonds

question 29

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)all of the reasons listed in the other answers

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Definitions:

Undervaluing Currency

A policy or practice where a country deliberately keeps its currency's value lower than its real strength to gain a competitive advantage in international trade.

China

A country in East Asia, known for its long history, diverse culture, and significant influence on global politics and economy.

Currency Exchange Rate

The value of one currency for the purpose of conversion to another, dictating how much one currency is worth in terms of another.

Value Fluctuation Rate

The rate at which the value of an asset or currency rises or falls over a specific period of time.