Debt contracts (also called instruments) issued by government and corporations are known as
A) bonds.
B) stocks.
C) real assets.
D) federally insured deposits.

Question

Quizplus · Accepted Answer

Bonds are debt instruments issued by governments and corporations to raise funds. Investors lend money to the issuer in exchange for periodic interest payments and the return of the bond's face value at maturity. Stocks represent ownership in a company, real assets are physical or tangible assets like real estate or commodities, and federally insured deposits are savings accounts or certificates of deposit protected by government insurance.

Debt Contracts (Also Called Instruments) Issued by Government and Corporations