The Financial Asset Is Referred to as a ________ If

question 19

Multiple Choice

The financial asset is referred to as a ________ if the claim is a fixed dollar.

• A) debt instrument.
• B) common equity instrument.
• C) derivative instrument.
• D) preferred equity instrument.

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Definitions:

Consensual Secured Transaction

A financial agreement where both parties agree to the deal, and collateral is provided to secure the transaction.

Debtor

An individual or corporation that owes money or a debt to another, known as the creditor.

Collateral

Assets pledged as security for the repayment of a loan, forfeitable in the event of a default.

Contractual Defenses

Legal arguments that can be used to challenge the enforceability of a contract, such as incapacity, duress, or fraud.