Multiple choice general knowledge

Which of the following cannot be called as a Debt Instrument as referred 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

Debt instruments represent borrowed money that must be repaid: bonds, CDs, commercial papers, and loans are all debt. Stocks represent equity ownership, not debt - shareholders are part-owners, not creditors. This is the fundamental distinction between debt and equity markets.