Subordinate debentures are relatively low risk investments.

Name: Subordinate debentures are relatively low risk investments.
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Question

Quizplus · Accepted Answer

Subordinate debentures are not considered low risk investments because they represent a form of unsecured debt that is subordinated to other types of debt in the event of bankruptcy or default. This means that in case of default, subordinate debenture holders are only paid after other creditors are paid, increasing their risk of losing their investment.

Subordinate Debentures Are Relatively Low Risk Investments