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.
(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.
Answers
GPT-4o mini
The most accurate response regarding the advantages of investing in government bonds is:
**The money is guaranteed and will earn some interest.**
Government bonds are considered low-risk investments because they are backed by the government, meaning that the principal and interest payments are generally secure. While the interest rates may be lower compared to other investment options, the safety and predictability of returns can be appealing to investors, especially those looking for stability.
**The money is guaranteed and will earn some interest.**
Government bonds are considered low-risk investments because they are backed by the government, meaning that the principal and interest payments are generally secure. While the interest rates may be lower compared to other investment options, the safety and predictability of returns can be appealing to investors, especially those looking for stability.