Personal Finance: Investing in Bonds and Other Alternatives — Flashcards | Financial Literacy | FatSkills

Personal Finance: Investing in Bonds and Other Alternatives — Flashcards

Fast review mode: answers are shown by default so you can skim quickly. Hide them if you want to self-test.

What are bonds?
Bonds, also known as fixed income instruments, are used by governments or companies to raise money by borrowing from investors. Bonds are typically issued to raise funds for specific projects. In return, the bond issuer promises to pay back the investment, with interest, over a certain period of time.

On the other hand, alternative investments are supplemental strategies to traditional long-only positions in stocks, bonds, and cash.

Alternative investments include investments in five main categories: hedge funds, private capital, natural resources, real estate, and infrastructure.
 

1 of 118 Ready
Bonds reduce risk through diversification.
True
Shortcuts
Prev Space Show / hide Next
Turn this into a study set.
Sign in with Google to save tricky questions to your reminder list and resume on any device.
Sign in with Google Free • no extra password