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?
Question : Which of the following is a feature of a commercial paper?
Question : Which of the following is a feature of a certificate of deposit (CD)?
Question : Which of the following is a feature of a money market instrument?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile