Question

Government bonds do not pay very high interest rates. What advantages do they have for those whoinvest in them?
(1 point)
The value will vary with the dollar’s exchange rate.
It is beneficial to invest money at a low interest rate.
The money is guaranteed and will earn some interest.
Businesses get tax credits for purchasing government bonds.
A)
Juanita is saving up to buy a truck. She wants to put $4000 down and borrow the rest. That downpayment will lower the monthly payment so she can easily afford a new truck. She has been saving for18 months and has half the money. It will take her about the same amount of time to save up the otherhalf. What should she do with the $2000 in the meantime?
(1 point)
purchase a government bond and postpone the purchase
keep it in her checking account with the money she spends regularly
change her strategy and borrow all of the money to get the truck sooner
invest in a treasury bill so that she can access the money when she needs it

Answer 1

1) The money is guaranteed and will earn some interest.

2) Invest in a treasury bill so that she can access the money when she needs it.