Which One of the Following Instruments Is the Least Important

question 33

Multiple Choice

Which one of the following instruments is the least important in terms of funds raised in the credit markets?

• A)U.S.government securities
• B)tax-exempt obligations
• C)corporate bonds
• D)mortgages

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Definitions:

Collateral

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

Value

The importance, worth, or usefulness of something, often determined by its desirability, utility, or rarity.

UCC

A comprehensive set of laws governing commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across jurisdictions.

Consideration

A fundamental concept in contract law that involves something of value exchanged between parties, serving as the reason or motive for entering into a contract.