Question
Government bonds do not pay very high interest rates. What advantages do they have for those who invest in them?
(1 point)
Responses
The value will vary with the dollar’s exchange rate.
The value will vary with the dollar’s exchange rate.
It is beneficial to invest money at a low interest rate.
It is beneficial to invest money at a low interest rate.
The money is guaranteed and will earn some interest.
The money is guaranteed and will earn some interest.
Businesses get tax credits for purchasing government bonds.
Businesses get tax credits for purchasing government bonds.
(1 point)
Responses
The value will vary with the dollar’s exchange rate.
The value will vary with the dollar’s exchange rate.
It is beneficial to invest money at a low interest rate.
It is beneficial to invest money at a low interest rate.
The money is guaranteed and will earn some interest.
The money is guaranteed and will earn some interest.
Businesses get tax credits for purchasing government bonds.
Businesses get tax credits for purchasing government bonds.
Answers
GPT-4o mini
The correct response is:
**The money is guaranteed and will earn some interest.**
This highlights the primary advantages of government bonds: they are generally considered low-risk investments, as they are backed by the government, and they provide a predictable return through interest payments.
**The money is guaranteed and will earn some interest.**
This highlights the primary advantages of government bonds: they are generally considered low-risk investments, as they are backed by the government, and they provide a predictable return through interest payments.