Question : Which of the following is a long-term debt instrument?
Option 1: Treasury bills
Option 2: Commercial papers
Option 3: Corporate bonds
Option 4: Repurchase agreements
Correct Answer: Corporate bonds
Solution : The correct answer is (c) Corporate bonds.
Corporate bonds are long-term debt instruments issued by corporations to raise capital. They represent a form of borrowing for the issuing company and typically have maturities exceeding one year. Corporate bonds are a way for companies to raise funds for various purposes, such as funding expansion projects, refinancing existing debt, or acquiring other companies.
Question : Which of the following is an instrument of the money market?
Option 1: Corporate bonds
Option 2: Treasury bills
Option 3: Common stocks
Option 4: Mortgage-backed securities
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