Which of the following IS an example of a CAPITAL MARKET SECURITY?Select one:a. 6 month Treasury Billb. Bankers Acceptancec. Certificate of Depositd. Debentures

The correct answer is d. Debentures.

Here's why:

a. A 6 month Treasury Bill is a short-term obligation issued by the U.S. government. It is not a capital market security because capital market securities are long-term investments, typically over a year.

b. A Bankers Acceptance is a short-term debt instrument issued by a company that is guaranteed by a commercial bank. Again, it is not a capital market security because it is not a long-term investment.

c. A Certificate of Deposit (CD) is a savings certificate with a fixed maturity date and specified fixed interest rate. CDs can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment. CDs are not considered capital market securities because they are not traded in the capital markets.

d. Debentures are a type of debt instrument that is not secured by physical assets or collateral. They are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond in order to secure capital. Unlike other types of bonds, debentures are not secured by an asset or collateral. Debentures are the most common form of long term loans that can be taken out by a corporation. These loans are repayable on a fixed date and pay a fixed rate of interest. Debentures are a feature of capital markets and thus, they are considered a capital market security.