Question

Which of the following is an example of a capital market instrument? a. U.S. Treasury bills. b. Money market mutual funds. c. Commercial paper. d. Banker's acceptances. e. Preferred stock.

Answer 1

Answer:

(e) Preferred stock.

Explanation:

Preferred are given with a fixed standard worth and deliver profits dependent on a level of that standard, typically at a fixed rate. Much the same as securities, which additionally make fixed installments, the market estimation of favored offers is delicate to changes in loan fees. In the event that financing costs rise, the estimation of the favored offers falls.