Multiple choice

In which of the following investment is not made by debt funds?

  1. Corporate paper

  2. Financial institutions' bonds

  3. Equity of private companies

  4. Government debt instruments
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Debt funds invest in various fixed-income instruments including corporate paper (commercial paper), bonds issued by financial institutions, and government debt securities. They do NOT invest in equity shares of private companies as that would make them equity funds, not debt funds.

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