Question

what is one benefit of purchasing saving bonds?
○ saving bonds are purchased from the government and guaranteed to increase in value.
○ saving bonds are purchased from commercial banks and guaranteed to increase in value.
○ saving bonds are short term investments backed by the government to protect from loss.
○ saving bonds are long term investments created to help first time home buyers obtain a mortgage.

Explanation:

To determine the correct answer, we analyze each option:

• Option 1: Savings bonds (like U.S. Savings Bonds) are issued by the government (e.g., Treasury bonds in the US). They are designed to increase in value over time as they earn interest, and the government guarantees their value growth.
• Option 2: Savings bonds are not purchased from commercial banks; they are government - issued, so this is incorrect.
• Option 3: Savings bonds are typically long - term investments, not short - term. So this description is wrong.
• Option 4: Savings bonds are not specifically created to help first - time home buyers get a mortgage. Their main purpose is savings and investment with government backing.

Answer:

A. Saving bonds are purchased from the government and guaranteed to increase in value.