Which of the Following Is True About Debt Securities

question 12

Multiple Choice

Which of the following is true about debt securities?

• A) Debt securities are usually in the form of preferred stocks.
• B) When companies are growing faster than they can make money, many prefer asset-based financing.
• C) Publicly issued debt (such as bonds or commercial paper) is more commonly used by smaller companies.
• D) Financial institutions, such as insurance companies, prefer to make short-term loans.

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Definitions:

Pituitary

A small gland at the base of the brain responsible for regulating vital body functions and general wellbeing through hormone secretion.

Insulin

A hormone produced by the pancreas that regulates the amount of glucose in the blood.

Pancreas

An organ in the abdominal cavity involved in digestion and blood sugar regulation, producing digestive enzymes and insulin.

Female Pelvis

The lower part of the trunk of the human body between the abdomen and the thighs; in females, it includes the structures involved in reproduction.