Examkin

Soru

Zorluk: KolayThe Capital Market: Stock Exchange, Securities, and Trading

Which of the following financial instruments is traded on the capital market to raise long-term debt capital for a company?

  1. DebenturesCevap
  2. B
    Treasury Bills
  3. C
    Commercial Papers
  4. D
    Banker's Acceptances

Cevap

Debentures are long-term debt securities traded on the capital market to secure long-term loan funds for corporate enterprises.
Debentures are long-term debt instruments issued by public limited companies to borrow capital from the investing public through the capital market, making them the correct choice.

Adım Adım Çözüm

1
Identify the market type and tenure requested
The target instrument must operate in the capital market for long-term debt financing.
The capital market specializes in medium- and long-term funds, whereas the money market deals in short-term debt.
2
Evaluate the financial instruments listed
Treasury Bills, Commercial Papers, and Banker's Acceptances are short-term money market instruments, whereas Debentures represent long-term debt securities.
Debentures carry fixed interest payments and mature over longer time horizons exceeding one year.

Anahtar Kavram

Capital Market Instruments vs Money Market Instruments
Bu soruyu puanla

Konular

The Capital Market: Stock Exchange, Securities, and Trading

Bu konudan daha fazla soru