Which of the Following Statements About Financial Markets and Securities

question 44

Multiple Choice

Which of the following statements about financial markets and securities is TRUE?

• A)A bond is a long-term security that promises to make periodic payments called dividends to the firm's residual claimants.
• B)A debt instrument is intermediate term if its maturity is less than one year.
• C)A debt instrument is intermediate term if its maturity is ten years or longer.
• D)The maturity of a debt instrument is the number of years (term)to that instrument's expiration date.

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Definitions:

Complex Activity

An activity involving multiple, often interrelated steps or processes that require a high level of skill, knowledge, or coordination to complete successfully.

Coordination

The organized arrangement or harmonious functioning of parts for effective results, often involving the integration of efforts among members of a group or organization.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Cohesive Group

A group characterized by unity and strong bonds among its members, leading to higher levels of cooperation and collective action.