A credit market instrument that provides the borrower with an amount of funds that mustbe repaid at the maturity date along with an interest payment is known as aA) simple loan.B) fixed-payment loan.C) coupon bond.D) discount bond
Question
A credit market instrument that provides the borrower with an amount of funds that mustbe repaid at the maturity date along with an interest payment is known as aA) simple loan.B) fixed-payment loan.C) coupon bond.D) discount bond
Solution
The correct answer is A) simple loan. A simple loan is a type of credit market instrument where the borrower receives an amount of funds that must be repaid at the maturity date along with an interest payment. The other options, such as a fixed-payment loan, coupon bond, and discount bond, have different structures and repayment terms.
Similar Questions
Which of the following investment referred to as fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental)?*Bank DepositsCurrenciesMutual FundsStocks (Equity)Real EstateInsurance
It is a loan taken at a certain rate of interest for a definite time period and repaid on maturity.a.Bondsb.Notes payablec.Interest payabled.Taxes payable
A(n) is a financial instrument that obligates a borrower to repay money with interest to a lender (which may be a government municipality or corporation).
Debt instruments
It is an instrument of short-term borrowing by the Government of India maturing in less than one year. (a) l (b) (c) (d) None of the aboveAnswer choicesSelect only one optionREVISITCommercial bilTreasury billCall moneyShares
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.