In capital markets, instruments which are traded having maturity of more than one year is classified as
A. contraction mortgages
B. bonds and mortgages
C. expansion bonds
D. expansion mortgages
Answer: Option B
Solution (By Examveda Team)
In capital markets, instruments which are traded having maturity of more than one year is classified as bonds and mortgages. A mortgage bond is a bond secured by a mortgage or pool of mortgages. These bonds are typically backed by real estate holdings and real property such as equipment. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default.This Question Belongs to Management >> International Finance And Treasury
Join The Discussion