Which financial instrument is considered a low-risk investment option?

U.S. Treasury bonds are regarded as a low-risk investment option because they are backed by the full faith and credit of the U.S. government. This government backing means that they are highly unlikely to default, making them a reliable choice for investors seeking security for their capital. Treasury bonds provide a fixed interest return over a predetermined period, and their stability is attractive in uncertain economic times.

In contrast, stocks can be volatile and subject to market fluctuations, leading to potential capital losses. Real estate, while often viewed as a stable investment, can carry risks such as property market downturns and maintenance costs. Options are financial derivatives that can offer high returns but come with significant risk, as they can expire worthless and result in losses that exceed the initial investment. Thus, among the options presented, U.S. Treasury bonds stand out as the safest choice for those seeking low-risk investments.