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

Question

Quizplus · Accepted Answer

U.S. government bonds are backed by the full faith and credit of the federal government, making them a secure investment. This means that investors can be confident that the government will honor its debt obligations and repay the principal and interest on the bonds. The other options provided are incorrect: 
A) The interest rates on U.S. government bonds are not tied to the consumer price index, but they are generally considered a safe hedge against inflation. 
C) The interest rates on U.S. government bonds may be lower or higher than corporate bonds depending on market conditions and duration. 
D) While the federal government does promise to replace lost or stolen bonds, this is not the primary reason why U.S. government bonds are considered a secure investment.

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