The reason people buy debentures is to:
A)reduce their income taxes.
B)receive dividend payments.
C)earn interest.
D)save money.

Question

Quizplus · Accepted Answer

The primary reason people buy debentures is to earn interest, as they typically offer a fixed rate of return. While debentures may provide some tax benefits, such as tax-deductible interest payments, this is not the primary reason people buy them. Debentures do not typically offer dividend payments, as those are typically associated with stocks. Saving money may be a secondary benefit of buying debentures, but it is not the primary reason.

The Reason People Buy Debentures Is To