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:

Calendar-Year Basis

A method of accounting that uses the 12-month period from January 1 to December 31 as its fiscal year for financial reporting.

Fiscal Year

A 12-month period used for accounting and reporting purposes, which may or may not align with the calendar year.

Payroll Taxes

Taxes that are withheld from employees’ salaries or wages by the employer and paid directly to the government. These can include income tax, social security, and Medicare taxes.

Federal Income Taxes

Federal income taxes are the taxes levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.