Question : Which of the following is a feature of a debenture?
Option 1: Low-risk investment
Option 2: Fixed-rate of interest
Option 3: No maturity period
Option 4: High liquidity
Correct Answer: Fixed-rate of interest
Solution : The correct answer is (b). Fixed-rate of interest
A debenture is a type of debt instrument issued by companies or governments to raise capital. It represents a loan agreement between the issuer and the investor, where the issuer promises to repay the principal amount along with periodic interest payments.
Question : Which of the following is a feature of a treasury bill?
Option 1: High credit risk
Option 2: High interest rate
Option 3: Fixed maturity period
Option 4: No liquidity risk
Question : Which of the following is a feature of a commercial paper?
Option 1: Fixed maturity period
Option 2: High liquidity
Option 3: Low interest rate
Option 4: No credit risk
Question : Which of the following is a feature of a certificate of deposit (CD)?
Option 1: High liquidity
Option 2: Low interest rate
Option 1: Low liquidity
Option 2: High credit rating requirement
Option 3: High interest rate
Option 4: No fixed maturity period
Question : Which of the following is a feature of a money market instrument?
Option 2: long maturity period
Option 3: Low liquidity
Option 4: Low interest rate
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