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How does the risk or return ratio of a government bond compare with that of other types of investments?
Wiki User
∙ 11y ago
The risk of a government bond is minimal, though the return from the government bond is very low compared to other lucrative bonds available in the market.When you opt for more return, there is more risk. Whereas though in government bond, the return is low, your investment is well secured and risk ratio is almost nil.
Wiki User
∙ 11y ago
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If the government uses tax money to pay for long term investments such as roads or other infrastructure what happens to the economy?
taxes decrease
If the government uses tax money to pay for long-term investments such as roads or other infrastructure what happens to the economy?
investment increases
What is the function of interest rates?
One word: PROFIT. That's the short answer. The long answer is the function of interest rates are tied to risk. A bank, lender, loan shark, etc... set their interest rates based on the perceived risk inherent with the loan. That is why personal loans and credit cards carry a higher interest rate than car or boat loans which are still higher than property loans. Personal loans are only a promise to pay with no collateral to fall back on while a home or building is the collateral for a property loan; there is an avenue of recourse for the bank. The more opportunity the lender has to lose money, the higher the interest rate. The other side of this has to do with investing and the risk/reward scenario. Various investments have different rates of return as the risk is different in each case. Stocks are risky and can deliver a great return or even negative return. Government bonds deliver a guaranteed return with no risk but the return is usually quite low.
How did this recession compare to other economic downturns?
fruit is yummy
What is government savings?
Government savingsThe Government has traditionally used the savings of private individuals to fund its own borrowing.Its main way of achieving this is to act as a financial institution in its own right and issue fixed interestinvestments via the Bank of England. These investments pay a fixed level of interest at regular intervals overa fixed (or variable) period of time. While they act as an investment to the individual buying them, returningthe original capital at the end of the term and interest at intervals during it, they function as a loan to theBank of England and hence the Government. Gilts are one of the best known types of this investment and arecovered in more detail in chapter 2.The other Government financial institution is National Savings and Investments (established in 1861 asthe National Savings Bank). Savings and deposits into this institution are also used to fund Governmentborrowing
What are the Merits and demerits of promissory notes?
higher liquidity, constant assured return on your investment lower returns compared to other investments
What are some low-risk equity investments?
low risk investments offer a good to high rate of return with very little change of loosing money. Real estate, other real property, and mutual funds are examples.
Classes of capital expenditures?
replacement investments expansion investments product-line or new market investments investments in safety and/or environmental projects strategic investments other investments
If the government uses tax money to pay for long term investments such as roads or other infrastructure what happens to the economy?
taxes decrease
If the government uses tax money to pay for long-term investments such as roads or other infrastructure what happens to the economy?
investment increases
What functions are used to analyze loans and investments?
Excel has a group of financial functions, some of which would do those things. There are functions for working out rates of interest, payments you would need to make, the future value of investments, how much you would have to invest to get a certain return and many other things relating to loans and investments. You could also build your own formulas to calculate these things using other functions.
Investment Appraisal Methods?
The Payback method is one of the investment appraisal methods. Other methods to appraise investments are the Average Rate of Return and the Net Present Value method.
How does JP Morgan Chase rates compare to other leading investment groups?
JP Morgan Chase bank interest rates seem to be lower for gain on CD's and other such investments. User reviews and articles for JP Morgan are not as favorable as for other banks.
What is the percentage of returns for high yield investments?
High-yield investments, also called "junk bonds", are bonds at risk of default or other problems, but have higher returns. This makes them risky but potentially rewarding. Junk bonds provide an average return of between 5 and 6 percent as of spring 2013.
Why do you find percent yield?
This allows you to compare different investments. In general (other things being equal), you would normally prefer an investment which gives you a larger percent yield for any given time period.
How do hedge funds differ from other types of investments?
They aim for a positive return on investment. This type of investment is very much controlled by the investor and can be added to accordingly. I believe there is some flexibility with this form of investment.
What is the return on a roth IRA?
It depends on what you invest in. A Roth IRA is not a particular type of investment. You can use a Roth IRA to invest in bank accounts (CDs), stocks, bonds, mutual funds, and a lot of other more exotic investments. The rate of return you get depends on the investment you choose.
