Which of the Following Is Sometimes Issued in the Primary

question 8

Multiple Choice

Which of the following is sometimes issued in the primary market by nonfinancial firms to borrow funds?

• A) NCDs
• B) retail CDs
• C) commercial paper
• D) federal funds

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Definitions:

Equity

Equity represents an owner's share in the assets of a company, after all liabilities have been subtracted.

Accounts Receivable

The balance of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Credit

An entry recording an increase in assets or decrease in liabilities and equity on the company’s balance sheet, or the provision of goods or services in exchange for a promise of payment in the future.

Equity

The value of an ownership interest in property, including shareholders' equity in a company, represented by the assets minus liabilities.