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 correct response is:
**The money is guaranteed and will earn some interest.**
Government bonds are generally considered low-risk investments because they are backed by the government's credit, making them a safe option for investors looking for stability, even if the interest rates are not very high.
**The money is guaranteed and will earn some interest.**
Government bonds are generally considered low-risk investments because they are backed by the government's credit, making them a safe option for investors looking for stability, even if the interest rates are not very high.