Rashid bought a long-term IOU issued by the federal government on which he is paid interest at regular intervals. This is
A) a money market.
B) a bond.
C) a stock.
D) a cash investment.
E) commercial paper.

Question

Quizplus · Accepted Answer

Rashid bought a bond, which is a long-term IOU issued by entities such as the federal government. Bonds pay interest at regular intervals to the holder until they mature.

Rashid Bought a Long-Term IOU Issued by the Federal Government