Which of the Following Statements Regarding the Private Debt Market

question 45

Multiple Choice

Which of the following statements regarding the private debt market is false?

• A) Private debt has the advantage that it avoids the cost of registration.
• B) Bank loans are an example of private debt, debt that is not publicly traded.
• C) Private debt has the disadvantage of being illiquid.
• D) The public debt market is larger than the private debt market.

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Definitions:

Unearned Insurance Revenue

Income received by an insurance company for policies that have been paid in advance but the service has not yet been provided or earned.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for payment of losses or damages covered by the policy.

Sales Taxes Payable

Liabilities recorded on the balance sheet for sales tax collected from customers on behalf of governmental entities, to be remitted in the future.

Sales Tax Expense

The cost incurred by a business collecting sales tax from customers, which is then remitted to the government, not to be confused with a direct business expense.