Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as______________?
Correct answer: A. Financial instruments
- A. Financial instruments
- B. Capital assets
- C. Primary assets
- D. Competitive instruments
Explanation
Notes, mortgages, bonds, stocks, Treasury bills and consumer loans represent claims or contracts with financial value, so they are financial instruments. They are not all capital assets or competitive instruments.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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