Identify the savings (investment) instruments you use or have used in the past (if you haven’t used any, identify those that you are most likely to use). Now, identify a number of alternative savings (investment) instruments that you have not used (or are least likely to use). Compare your two lists. Analyze the trade-offs that emerge. Why have you selected certain instruments in the past? Why may you use specific savings (investment) instruments in the future? Why will you decide to not use certain instruments in the future?
All Treasury securities, regardless of duration, are backed by the "full faith and credit" of the U.S. Government. This amounts to a government guarantee that you will receive both your promised interest payments and the return of your principal if you hold the bonds until maturity. Since the U.S. government has the authority to print money, the risk of the government not
