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

Question

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

Answer 1

The investment characterized by the traits you described is Bonds.

• Investors loan money to entities like a city, county government, or a company.
• The money is repaid after a certain date (the maturity date), along with interest payments.
• Bonds are generally considered a safer investment option, but they are not insured by the FDIC, which applies to bank deposits like savings accounts.