Which of the Following Investments Are Quoted on a Discount

question 3

Multiple Choice

Which of the following investments are quoted on a discount basis?

• A) Treasury bills
• B) Certificates of deposit
• C) Treasury notes
• D) Certificates of indebtedness
• E) Corporate bonds

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Definitions:

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to secure immediate capital.

Assignment

Assignment refers to the transfer of rights or property from one party to another, commonly seen in contracts and legal agreements.

Novation

The act of replacing one obligation with another by mutual agreement, effectively creating a new contract.