Which of the Following Is a Characteristic of a Bond

question 34

Multiple Choice

Which of the following is a characteristic of a bond?

• A) It is a short-term loan from a commercial bank.
• B) It refers to capital raised by selling corporate shares.
• C) It refers to a debt security used to raise capital.
• D) It is a debt instrument on which dividends are paid.

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Definitions:

Future

In a general context, 'future' refers to the time or a period of time following the moment of speaking or writing; in finance, it often pertains to a contract to buy or sell an asset at a later date.

Exaggeration

A statement that represents something as better or worse than it really is, often used for emphasis or effect.

Fraud

The intentional deception or misrepresentation made by a person with the aim of gaining something of value or causing some benefit to themselves at another’s expense.

Innocent Party

An individual or entity not responsible or involved in the wrongdoing or legal dispute in question.