A Bond Is a Financial Security That Represents

question 188

Multiple Choice

A bond is a financial security that represents

• A)ownership in a corporation.
• B)the portion of profits paid to shareholders.
• C)the interest rate paid on a share of stock.
• D)a promise to repay a fixed amount of funds.

---

Definitions:

Customer Payments

The payments made by customers for products or services received from a company.

Zero-balance Account

A banking arrangement where a company’s bank account is maintained at a zero balance, with funds being transferred from a master account as needed.

Disbursement Purpose

The specific reason or objective for which funds are paid out or disbursed in a financial transaction.