Which of the Following Is True of Debt Securities

question 28

Multiple Choice

Which of the following is true of debt securities?

• A)It refers to the technique of protecting against the potential losses that result from adverse changes in exchange rates.
• B)It refers to the simultaneous and instantaneous purchase and sale of a currency for a profit.
• C)It refers to a loan from the investor to a company or government entity.
• D)It refers to the practice of buying and selling a currency with the expectation that the value will change and result in a profit.
• E)It refers to the ownership of a part of a company.

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Definitions:

Binding Contract

An agreement between parties that is legally enforceable and includes all necessary elements of a contract, such as offer, acceptance, consideration, and mutual intent to be legally bound.

Notice To Quit

A written notification from a landlord to a tenant to leave the premises by a specified date.

Continues Business

Continuation of company operations without interruption or cessation.

Dissociation

The process by which a member's involvement in an entity is terminated, typically in the context of a partnership or limited liability company.