Which of the following is an example of a financial instrument?a.Carb.Patentc.Treasury billd.Computer software
Question
Which of the following is an example of a financial instrument?
- a. Carb.
- b. Patent
- c. Treasury bill
- d. Computer software
Solution
The correct answer is c. Treasury bill. A Treasury bill (or T-bill) is a short-term debt obligation backed by the U.S. government with a maturity of less than one year, sold in denominations of 5 million. T-bills have various maturities and are issued at a discount from par. When they mature, the government pays the holder the full par value. This is considered a financial instrument because it is a tradable asset of any kind; it can be cash, evidence of an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument.
Similar Questions
Which of the following is NOT a money market instrument?
Instruments that represent financial claims like ownership (stocks) or creditor relationships (bonds).
What is a capital market instrument? A. Physical asset B. Financial instrument C. Intellectual property D. Raw material
Which of the following is a capital market instrument?Group of answer choicesTreasury billsCertificates of depositsPreferred sharesCommercial papers
Which of the following is a financial asset?Answer : Machinery Intangible assets Loan receivable Prepayments
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.