student asking question

In economics, what's the main role of the "bond?"

teacher

Native speaker’s answer

Rebecca

In economic terms, a bond is a certificate issued by a government or a public company that promises to repay borrowed money at a fixed rate of interest at a specified time. For people who are wary of buying stocks, this is a safer investment method. Ex: I bought a lot of bonds during the pandemic. Ex: I prefer buying bonds over stocks.

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