United States Government Bonds, United States Government Savings Bonds, Government Municipal Bonds and Tax Exempt Government Bonds —think of it as a more formal IOU and indeed, bonds must be legally acknowledged before in effect. Bonds are usually transferable, and it is not uncommon to find them up for bid by authorized bond holders. The transactions of bonds concern themselves with large amounts, as usually the money is used for long-term investments.

Government bonds, though, are used for immediate expenses such as infrastructure development. This involves the government issuing bonds to foreign countries or international corporations. Many of these outside or private bodies do extensive research regarding the government's economical standing, and their debt history. More often than not, government bonds are honored at their fixed maturity; the loaner pays in full with the agreed interest rate.

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