Question

What is an advantage of government bonds?

They have a high interest rate.
They are difficult to find.
They are relatively risk-free.
All of the above.

Answer 1

They are relatively risk free.
All the other selections are not considered advantages.

Answer 2

They are relatively risk-free is the correct answer.

Step-by-step explanation:

Advantage of government bonds is they are relatively risk-free because their default risk is completely low.

A government bond is allocated through the national government and it is a risk-free bond as the interest will be repay given the appropriate government does not default upon their bonds.

The aim of a government bond is to support government spending and it a safe investment.