(I)Debt markets are often referred to generically as the bond market.
(II)A bond is a security that is a claim on the earnings and assets of a corporation.
A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.

Question

Quizplus · Accepted Answer

(I) is true because debt markets are indeed commonly referred to as the bond market, encompassing various types of debt securities including bonds. (II) is false because a bond is specifically a debt instrument issued by entities (such as corporations or governments) to raise funds, representing a loan made by an investor to the issuer, rather than a claim on the issuer's earnings and assets, which more accurately describes equity.

(I)Debt Markets Are Often Referred to Generically as the Bond