Which One of the Following Is Classified as a Fixed-Income

question 7

Multiple Choice

Which one of the following is classified as a fixed-income security?

• A)U.S. Treasury bill
• B)6-month municipal bond
• C)common stock that pays regular quarterly dividends
• D)2-year U.S. Treasury security
• E)9-month bank certificate of deposit

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Definitions:

Capital Stock

The total amount of shares a company is authorized to issue, representing the owners' equity in the corporation.

Investing Activity

Financial activities related to the acquisition and sale of long-term assets and other investments not considered cash equivalents.

Income Statement

A fiscal statement detailing a firm's income, expenditures, and earnings during a determined timeframe.

Cash Flows

The aggregate sum of funds moving into and out of a company, particularly influencing its liquidity.