U.S.government bonds are considered a secure investment because:

Question

Quizplus · Accepted Answer

U.S. government bonds are considered a secure investment because they are backed by the full faith and credit of the federal government. This means that the government guarantees to repay the principal plus interest to the bondholders, making them a low-risk investment. The other options mentioned in the question are not entirely accurate - interest rates on U.S. government bonds can fluctuate and are not necessarily tied to the consumer price index, and they may not necessarily have a higher interest rate than corporate bonds. Additionally, the federal government does not replace lost or stolen bonds, as they are typically held in electronic form nowadays.

U.S.government Bonds Are Considered a Secure Investment Because