Question

Which statement describes the way war bonds raised money?

The government received a cash loan from the buyer; the buyer received the original amount back plus interest.
The government received a cash contribution from the buyer; the buyer donated money that was not returned.
The government paid a cash loan to the buyer; the buyer paid back the loan plus interest.
The government received a cash loan from the buyer; the buyer received back only the interest on the loan.

Answer 1

So, the question is mainly just about the definition of a bond. Bonds, as in 'stocks and bonds' are investments that you pay into, then receive money back from over time, in the form of interest. If you buy a bond from the government, it is as though you're lending them money, with the understanding that they'll pay you back, with interest.

Answer 2

Thank you!!

Answer 3

Not at all! Take care