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10:36 5G Marketplaces: EVERFI Investing Basics \( { }^{\text {m }} \) Quiz Question 3 of 5 Which investment type is a fixed income investment, meaning you get paid on a regular schedule? Select a response. Bonds Stocks Cash Equivalents Real Estate Submit Continue Back Finish platform.everfi.net

Ask by Klein Donnelly. in the United States
Feb 22,2025

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Bonds are the correct answer because they offer regular payments.

Solution

The correct answer is Bonds. Bonds are a type of fixed income investment because they typically provide regular interest payments over the life of the bond.

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Bonds are a type of fixed-income investment that allows you to lend money to an issuer, such as a corporation or government, in exchange for periodic interest payments and the return of the bond's face value at maturity. They’re often seen as a stable investment choice, offering a predictable income stream compared to more volatile options like stocks. In practice, investors often use bonds to diversify their portfolios and reduce risk, especially in times of economic uncertainty. They can be ideal for those seeking a regular income, such as retirees, or for individuals looking to balance potential losses from higher-risk investments. The world of fixed income can be quite exciting when you find the right bonds that fit your investment goals!

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