Quiz on Lesson ” What Is A Bond “

What is the purpose of bonds in financing for corporations and governments?

A. To raise funds by selling paper slips to investors

B. To pay off existing debt

C. To invest in stocks

What are some of the risks associated with investing in bonds?

A. Changes in interest rates and the possibility of the issuing company failing

B. Unexpected inflation and market volatility

C. Lack of diversification and high fees

Why is it important to understand both investing in stocks and bonds for successful investing?

A. Stocks and bonds have similar risk and return characteristics

B. Bonds provide a more stable and predictable return compared to stocks

C. Successful investing requires a diversified portfolio of both stocks and bonds

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