Which term refers to a certificate of indebtedness that specifies the obligations of the borrower to the holder?
A) bond
B) stock
C) mutual fund
D) savings plan

Question

Quizplus · Accepted Answer

A bond is a certificate of indebtedness that specifies the obligations of the borrower (issuer) to the holder (investor) and typically involves the payment of periodic interest and repayment of the principal at the end of the term. Stocks represent ownership shares in a company, mutual funds are investment vehicles that pool the money of multiple investors to invest in a diversified portfolio of securities, and savings plans generally refer to accounts that offer interest or other returns on deposited funds.

Which Term Refers to a Certificate of Indebtedness That Specifies