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Because these bonds are considered a very low risk dependable investment.

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Q: Why do lenders put their money into government bonds?
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Where will the US get the money for the stimulus package?

Unless new or increased taxes are put into law, the money will have to be borrowed by issuing government bonds.


What are commercial lenders?

Commercial lenders are usually store front money lenders. Some of them are large enough to where they can advertise on television, put up a website and operate in any state they can obtain a license from.


The price of a bond is equal to the sum of the interest payments and the face amount of the bonds?

This is how you make money on the bonds. You will put in the money and will receive that money and the interest on it at the end of the term.


How does the Fed expand the money supply?

The Federal Reserve expands the monetary supply by buying government bonds and lowering interest rates. This allows for more money to be put into circulation, making it available for banks and consumers.


When you put your money in a fund and the investment company combines that money with the money of millions of other investors and buys stocks and bonds with it?

this is a mutual fund


What respected website can provide a list of bad credit lenders?

Bad credit lenders are a bit difficult to find right now with the current economic situation. You can try websites like, www.badcreditloanservices.com, but just be careful and do not put out any money.


High-Grade Municipal Bonds or Mutual Funds?

It's when you take all of your money and put in in the microwave so the grain of the money is really rough


Are put bonds good?

Put bonds are a symptom that something is really wrong with the company. There are two reasons you might consider issuing put bonds--ones where you promise to buy the bonds back on certain dates if the purchaser demands it. One is that you can't get anyone to take your bonds otherwise. The other is where you want to ward off a hostile takeover. You issue a pile of put bonds. The acquirer will know that if he consummates the takeover, when the next date the bonds can be put back occurs a lot of people are going to be at your door demanding their money. This technique is known as a Jonestown defense--because if the acquirer decides to abandon the takeover after seeing the mass of put bonds you sold, and all your bondholders put back their bonds after the hostile takeover falls through, you will probably go bankrupt.


Why did people sell there war bonds during the American revolution?

War bonds were a very simple method for the government to make money. At the time, most of the wages Americans were getting were from making the things the government was spending money on, so they encouraged civilians to put that money back into the war effort.


What is the difference between bearer bonds and bail bonds?

Bearer bonds are unregistered, negotiable bonds where the physical possession of the bond represents ownership, while bail bonds are financial guarantees provided by a bail bond agent to ensure a defendant's appearance in court. Bearer bonds are issued by corporations and governments to raise capital, while bail bonds are typically used in the criminal justice system to secure a defendant's release before trial.


How are elements put together?

they are put together in bonds; ionic bonds which are metal to nonmetal or covalent bonds which are non metal to nonmetal. Ionic bonds transfer electrons and covalent bonds share electrons


What are oil bonds?

Government owned oil companies in India suffer losses as the prices of petroleum products are administered by the government. Even when the oil prices increase the government is not in a position to rise the prices automatically due to fear of loss of popularity. So the government issued oil bonds to cover the losses or to put it simply the loss was covered by the government without paying a single rupee from its funds. The oil companies can raise loans against the bonds but can they cash the same is a moot question.