Question

Description of the following investment options and elaborate on the risk factor of each fixed deposit, retail saving bonds and debentures

Answer 1

"Fixed deposits: In this, a person deposits a certain sum of money for a given period of time and gets interest on it. The whole amount is collected after the given period.

Retail Saving Bonds: These are given by the Governments from the National Treasury and offer higher interest rates.

Debentures: These are loans, issued at a fixed interest rate.

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