Financial Management - Study Mode
[#856] Financial security in which there is no default risk and issues by U.S governments is classified as
Correct Answer
(A) U.S treasury bonds
Explanation
Solution: Financial security in which there is no default risk and issues by U.S governments is classified as U.S treasury bonds. Treasury bonds are U.S. government debt securities with a maturity range between 10 and 30 years and which are marketable and set at a fixed interest rate. T-bonds pay semiannual interest payments until maturity, at which point the face value of the bond is paid to the owner.
[#857] Financial security issues by major banks and risk depends on strength of issuer is classified as
Correct Answer
(A) negotiable certificate of deposit
Explanation
Solution: Financial security issues by major banks and risk depends on strength of issuer is classified as negotiable certificate of deposit. Financial security refers to the peace of mind you feel when you aren't worried about your income being enough to cover your expenses. It also means that you have enough money saved to cover emergencies and your future financial goals.
[#858] An unlimited liability is classified as liabilities of the
Correct Answer
(B) general partners
Explanation
Solution: An unlimited liability is classified as liabilities of the general partners. A general partnership is a business arrangement by which two or more individuals agree to share in all assets, profits and financial and legal liabilities of a jointly-owned business structure.
[#859] Financial security kept by non-financial corporations is
Correct Answer
(C) short term treasury bills
Explanation
Solution: Financial security kept by non-financial corporations is short term treasury bills. Treasury bills are issued when the government need money for a shorter period while bonds are issued when it need debt for more than say five years.
[#860] A retirement plans funded for workers by corporations, administered and commercial banks are classified as
Correct Answer
(B) pension funds
Explanation
Solution: A retirement plans funded for workers by corporations, administered and commercial banks are classified as pension funds. Pension funds are pooled monetary contributions from pension plans set up by employers, unions, or other organizations to provide for their employees' or members' retirement benefits.