which is an example of a lending investment?
A: Stocks
B: Bonds
C: Money market
D: cash
there is no text its just that question
Its B for sure
The correct answer is B: Bonds.
To determine the correct answer, we need to understand what lending investment means. Lending investment refers to investing money by loaning it to individuals, organizations, or the government, in exchange for fixed interest payments over a specific time period.
Now, let's evaluate the options given:
A: Stocks - Stocks represent ownership shares in a company, and investing in stocks does not involve lending money. Instead, stockholders become partial owners of the company.
B: Bonds - Bonds are debt securities issued by governments or corporations to raise capital. When you invest in bonds, you are essentially lending money to the issuer for a fixed period, and in return, you receive periodic interest payments, known as coupon payments, until the bond matures.
C: Money market - Money market refers to a marketplace where short-term debt securities are traded. While money market funds can hold various types of investments, such as Treasury bills and commercial paper, they do not involve lending money directly.
D: Cash - Cash is a form of currency and is not considered a lending investment.
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