Which of the following is an example of a debt instrument?
A)A checking account at a commercial bank
B)A share of stock in General Motors
C)A life insurance policy
D)A bond issued by General Motors

Question

Quizplus · Accepted Answer

A bond is a type of debt instrument where investors lend money to a company or government in exchange for regular interest payments and repayment of principal at a later date. Checking accounts (A) are not debt instruments as they are savings accounts where individuals deposit money for safekeeping. Shares of stock (B) represent ownership in a company and do not involve debt. Life insurance policies (C) are contracts between an individual and an insurance company and do not involve lending money or debt.

Which of the Following Is an Example of a Debt