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War bonds are a form of debt securities that are usually sold by governments involved in conflicts for the purposes of financing the military during war. They help a nations war effort in many different ways. On the front line they financing the war effort by expanding financial resources. At home, they get civilians behind the military and also removing money from the economy to prevent wartime inflation. After the war, the bonds usually bought back or liquidated and serve as a helpful way to transition to a peacetime consumer economy by encouraging war industries and factories to make the switch to consumer goods.
War bonds were sold as early as 1940 in the United States to help prepare for possible entry into the European theater for the war. They would help finance the war in place of a tax hike. The bonds were known as “Series E” bonds and would be sold for around $19, promising to mature in as little as ten years. They were also made in smaller amounts (savings stamps) and larger denominations ($100 and $50)
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