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1 FINANCE MCQS

A long-term debt instrument issued by governments or corporations is called ____________?

  • Contraction bonds
  • Expansion bonds
  • Dollar bonds
  • Bonds
Correct Answer: D. Bonds

Detailed Explanation

A bond is a long-term debt security issued by governments or corporations to raise funds for projects or operations. Investors lend money to the issuer in exchange for fixed interest payments and the return of principal at maturity. Bonds are widely used because they offer predictable returns and are considered safer than stocks.

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