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Which financial instrument represents a loan made by an investor to a borrower?

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Question: Which financial instrument represents a loan made by an investor to a borrower?

Options:

  1. Stock
  2. Bond
  3. Option
  4. Future

Correct Answer: Bond

Solution: 

A bond is a financial instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Which financial instrument represents a loan made by an investor to a borrower?

Practice Questions

Q1
Which financial instrument represents a loan made by an investor to a borrower?
  1. Stock
  2. Bond
  3. Option
  4. Future

Questions & Step-by-Step Solutions

Which financial instrument represents a loan made by an investor to a borrower?
No concepts available.
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