Which of the following are not debt instruments?

Bonds

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Debentures

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Mutual funds

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None of the above

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Solution

The correct option is D
None of the above
Mutual funds can invest in a variety of debt and equity instruments. Bonds and Debentures are debt creating instruments. So all the choices create debt for a company.

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Similar questions

Q21. Consider the following statements:

1. Debentures are long-term financial instruments which acknowledge a debt obligation towards the issuer.

2. The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs).

Which of the following statements are correct?

12

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