Question

which of the following investments is characterized by the following traits: * 2 points
investor loans money to a city, county government, or company
money is repaid after a certain date, plus interest is paid
generally considered a safe investment, although not insured by the fdic

a. bonds

b. exchange - traded fund (etf)

c. savings accounts

d. mutual funds

rent - to - own agreements can negatively impact consumers because. *

a. consumers do not have to pay cash for the item

b. consumers will pay a high interest rate on the item

c. consumers can immediately have access to the item

d. consumers are limited from purchasing similar items

Explanation:

First Sub - Question (Investment Traits)

• For option a (Bonds): When an investor buys a bond, they are essentially lending money to an entity (city, county government, company). The bond issuer repays the principal at maturity and pays interest periodically. Bonds are generally considered safe (especially government bonds) and are not insured by FDIC.
• For option b (ETF): ETFs are a collection of securities, they don't involve lending money to a single entity in the way described.
• For option c (Savings accounts): Savings accounts are insured by FDIC and involve depositing money in a bank, not lending to a city/county/company.
• For option d (Mutual funds): Mutual funds pool money from many investors to invest in a variety of assets, not a lending arrangement to a single entity.

• Option a: Not having to pay cash upfront is not a negative impact in itself.
• Option b: Rent - to - own agreements often have high interest rates (or equivalent costs) as the consumer is paying over time to own the item, which can be a financial burden.
• Option c: Immediate access to the item is a feature, not a negative impact.
• Option d: There is no restriction on purchasing similar items in rent - to - own agreements.

Answer:

a. Bonds

Second Sub - Question (Rent - to - own Agreements)