The University of Central Florida (UCF) wanted "to create a town center where students can live, ea study and revel in college traditions like football." In addition, the university needed funding to bui dorms that would house 2000 students. UCF was able to secure financing by promising to pay a len specific amount of money on specific dates.
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This transaction takes place in the market for capital.

Question

Quizplus · Accepted Answer

The transaction described involves UCF securing financing by promising to pay a specific amount of money on specific dates. This is characteristic of a bond, which is a type of financial instrument used to raise capital. The other choices (stock and loan) are also financial instruments, but do not fit the description of the transaction as well as bonds do. The choice of physical loan (D) is incorrect, as it is not a commonly recognized term in finance.

The University of Central Florida (UCF) Wanted "To Create a Town