Question

question 5 / 10
______ are loans to a company or government for a set amount of time. they earn interest and are considered low - risk investments.
a. bonds
b. stocks
c. derivatives
d. mutual funds

Explanation:

Bonds are debt instruments where an investor loans money to a company or government for a set period. They earn interest and are generally low - risk as the borrower has an obligation to repay. Stocks represent ownership in a company and are riskier. Derivatives derive value from an underlying asset and are often high - risk. Mutual funds are a pool of investments and their risk depends on the underlying assets, but they aren't loans to a company/government. So the correct option is A.

Answer:

A. Bonds