They are in games and pop culture but can someone explain in very simple terms what they are and how they work?
In: Economics
When the government and even just big companies needs to loan money they can not just go to a bank with a loan application. Instead they issue bonds. A bond have the same terms on it as a regular loan however instead of being issued by the lender it is issued by the debtor. Anyone can buy these bonds and the government will then pay them back the loan as per the terms on the bond sheet. What is special about war bonds compared to regular government bonds is that they are issued in wartime. War is expensive so the government tends to issue more bonds then usual as they rack up their debt. War bonds also tended to be marketed differently with military parades and patriotic posters in order to get people to buy them.
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