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Which of the Following Statements Is True

question 43

Multiple Choice

Which of the following statements is true?


Definitions:

Bond

A fixed income investment in which an investor loans money to an entity that borrows the funds for a defined period at a variable or fixed interest rate.

Premium

An amount paid in addition to a standard price or rate; in insurance, it's the amount paid for coverage.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay.

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