A Contract That Promises to Pay a Given Amount of Money

question 92

Multiple Choice

A contract that promises to pay a given amount of money to the owner of a security at specific dates in the future is known as

• A)a debt security.
• B)an equity security.
• C)stock.
• D)an option.

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Definitions:

Buyers

People or organizations that buy products or services for personal consumption, for reselling, or to use in manufacturing.

Tax

is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization to fund government spending and various public expenditures.

Sellers

People or organizations that make products or provide services available for purchase in the marketplace.

Tax Per Unit

A tax imposed on each unit of a good or service produced or sold, often used by governments to generate revenue or discourage consumption.