People who buy these financial instruments loan money at a predetermined rate for a fixed time. For 10 points each:
[10e] Name these financial instruments the US used to finance the World Wars. Treasury Bills are examples of these securities that are less risky than stocks.
ANSWER: bonds [accept war bonds or government bonds]
[10h] The issuer of a bond pays these payments to the holder in agreed intervals. The value of these payments is calculated by multiplying the bond’s face value and interest rate.
ANSWER: coupons
[10m] In quantitative easing, the central bank buys a large quantity of bonds to escape a “trap” named for this property. This property is the ability of an asset to be converted to cash.
ANSWER: liquidity [accept liquidity trap]
<Imperial A, Social Science>