Multiple choice general knowledge

Fixed Income Instruments include which of the following?

  1. Fixed-interest bonds,treasury bills and notes

  2. only fixed interest bonds

  3. Fixed-interest bonds,treasury bills and notes and shares of preferred stock.

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Fixed income instruments are securities that provide a return in the form of fixed periodic payments and the eventual return of principal at maturity. This includes fixed-interest bonds, treasury bills, treasury notes, AND preferred stock (which pays fixed dividends). Preferred stock is classified as fixed income because its dividend payments are typically fixed and known in advance, similar to bond interest. Option A is incomplete (omits preferred stock). Option B is too narrow (excludes T-bills and notes).

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