Multiple choice

Which of the following cannot be called as a debt instrument as referred to in financial transactions?

  1. Certificate of Deposits

  2. Bonds

  3. Stocks

  4. Commercial Papers

  5. Loans

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Stocks represent equity or ownership in a company, whereas bonds, certificates of deposit, loans, and commercial papers are all debt instruments where the issuer owes the holder a specific amount of money.