Was playing Red Dead 2 and the gang comes into some Bonds. Apparently they’re worth money but idk how the gang gets a profit from it, or how bonds work in civilian life.
In: Economics
Bonds are sheets of paper that are issued for fixed amounts. Loads of people here mention interest, but they don’t need to. Loads mention governments, but they don’t need to. Modern bonds are issued by governments and always include interest, but they don’t have to.
Bonds can been issued by just about any organisation. Pre paper money and especially pre cheques, they were ways of transporting money. It was a nightmare lugging around a load of gold/silver. So banks and companies issued bonds. There were two types. One with a name, one without. The ones with names could only be redeemed by the persons who’s name was on it. The others were called bearer bonds because whoever had it could cash them in.
so if you wanted to transport 50,000 dollars from New York to San Francisco, you do it in the form of bonds.
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