Question

Which of the following investments is characterized by the following traits:

Investor loans money to a city, county government, or company
Money is repaid after a certain date, plus interest is paid
Generally considered a safe investment, although not insured by the FDIC
(1 point)
Responses

Bonds
Bonds

Exchange-traded fund (ETF)
Exchange-traded fund (ETF)

Savings accounts
Savings accounts

Mutual funds
Mutual funds

Answers

GPT-4o mini
The correct investment characterized by the traits you provided is **Bonds**.

Bonds involve lending money to a city, county government, or company, with the expectation that the principal will be repaid after a certain date along with interest payments. They are generally considered a safer investment, although they are not insured by the FDIC.