The longer debt instrument issued by government and corporations is considered as _________?
Correct answer: D. bonds
- A. contraction bonds
- B. expansion bonds
- C. dollar bonds
- D. bonds
Explanation
Bonds are long-term debt instruments through which governments and corporations borrow money from investors. Short-term government debt is generally issued as treasury bills, not bonds.
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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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