Which of the Following Statements Best Describes Financial Markets

question 40

Multiple Choice

Which of the following statements best describes financial markets?

• A)Capital market instruments include both long-term debt and common stocks.
• B)Banker's acceptance has no default risk.
• C)Foreign banks are more restricted from operating in Canada.
• D)The original maturity of a commercial loan can go up to 10 years.

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Definitions:

Monthly Mortgage Payment

The amount paid by a borrower to a lender each month, which includes principal and interest on a mortgage loan.

Borrowed

Borrowed refers to funds or items taken on loan from another party, which are expected to be returned or paid back under agreed-upon conditions.

Amortized

The process of spreading out a loan or debt into a series of fixed payments over time, gradually reducing the balance.

Mortgage Payment

Regular payments made towards a mortgage loan, typically including both interest and principal.