Which of the Following Is a Long-Term Financial Instrument

question 6

Multiple Choice

Which of the following is a long-term financial instrument?

• A)a negotiable certificate of deposit
• B)a repurchase agreement
• C)a U.S. Treasury bond
• D)a U.S. Treasury bill

---

Definitions:

Securities Markets

Platforms or locations where securities such as stocks and bonds are bought and sold.

Stock Price

The current price at which a share of company stock can be bought or sold in the stock market.

Sustainable Earnings

The portion of a company's profits considered to be repeatable, stable, and able to be maintained over the long term.

P/E Ratio

A valuation metric that compares a company's stock price to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.