ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In which market can you buy and sell debt securities (like a loan) that will be paid back by a certain date with interest?
A
Stock Market
B
Commodity Market
C
Bond Market
D
Currency Market
Explanation: 

Detailed explanation-1: -The bond market-often called the debt market, fixed-income market, or credit market-is the collective name given to all trades and issues of debt securities.

Detailed explanation-2: -The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.

Detailed explanation-3: -Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate) and mortgages. The equity market (often referred to as the stock market) is the market for trading equity instruments.

Detailed explanation-4: -Debt securities are negotiable financial instruments, meaning they can be bought or sold between parties in the market. They come with a defined issue date, maturity date, coupon rate, and face value. Debt securities provide regular payments of interest and guaranteed repayment of principal.

Detailed explanation-5: -A corporate bond is a type of debt security that is issued by a firm and sold to investors. The company gets the capital it needs and in return the investor is paid a pre-established number of interest payments at either a fixed or variable interest rate.

There is 1 question to complete.