Why Might You Consider Investing in Bonds

question 28

Multiple Choice

Why might you consider investing in bonds?

• A)Bonds reduce risk through diversification.
• B)Bonds produce steady income.
• C)Bonds can be safe investment if held to maturity.
• D)All of the above

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Definitions:

Cost-Benefit Analysis

An economic evaluation method that compares the relative costs and benefits associated with a proposed project or decision.

Opportunity Cost

The worth of the best alternative given up when a decision is made.

Cost-Benefit Analysis

An evaluation process that compares the costs and benefits of a decision or project to determine its feasibility or worth.

National Defense

Activities and measures taken by a government to protect its country from external threats and ensure national security.