Question

Which is an example of a lending investment? A: Stocks B: Bonds C: Money market D: cash

Answer 1

B. Bonds - a bond is basically a debt usually used for growth or expansion of a company, government or other entities. They borrow money from the general public, and in return, pay it back with interest. Bonds are considered to have lower risk than stocks, because its value doesn’t fluctuate as much as stocks do.