Which Item Is a Paper Claim That Entitles the Buyer

question 232

Multiple Choice

Which item is a paper claim that entitles the buyer to future income from the seller? I. a financial asset
II) a physical asset
III) a liability

• A) I only
• B) II only
• C) III only
• D) I, II, and III

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Definitions:

Original Issue Discount

The difference between the par value (or face value) of a bond and the lower price at which it is originally sold, which effectively represents interest paid to the bondholder.

Interest Income

Income earned from the lending of funds or depositing money in interest-bearing accounts.

OID

Original Issue Discount; it refers to the difference between the original issue price of a bond and its maturity value, treated as interest for tax purposes.

Series I Savings Bonds

A type of U.S. savings bond designed to protect the value of your cash from inflation.