Which of the following would not be described as a debenture?
A) An unsecured loan
B) A loan secured by collateral
C) A loan secured by the "full faith and credit" of the issuer

Question

Quizplus · Accepted Answer

Debentures are typically unsecured loans that do not have specific assets as collateral. Instead, they rely on the creditworthiness and reputation of the issuer. A loan secured by collateral would not be considered a debenture, as debentures are not backed by physical assets.

Which of the Following Would Not Be Described as a Debenture