CLEAN : Thousands protest in Iceland over EU membe

What is the primary purpose of a bond?

• To represent ownership in a corporation

• To offer a loan to the issuer

• To provide equity in a company

• To act as a form of currency

Which of the following is a key characteristic of bonds?

• They are a form of debt

• They have no maturity date

• They pay dividends

• They represent company ownership

What is a common feature of most bonds?

• They are traded on stock exchanges

• They have a fixed interest rate

• They provide tax benefits

• They offer voting rights

Which type of bond is issued by the government?

• Corporate bond

• Municipal bond

• Junk bond

• Treasury bond

What distinguishes a municipal bond from other types?

• Issued by corporations

• Issued by local governments

• No interest payments

• Higher risk than corporate bonds