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:

Principle

The original sum of money borrowed in a loan, or put into an investment, exclusive of any interest or dividends.

Fossil Fuels

Fossil fuels are natural fuels such as coal, oil, and natural gas derived from the remains of living organisms that have been transformed over millions of years through heat and pressure.

Nonrenewable Energy Sources

Energy resources such as coal, oil, and natural gas that cannot be replenished in a short period of time and will eventually deplete.

Scarce Resources

Resources that are limited in availability and can be used in the production of goods and services.