Which of the following cannot be called as a Debt Instrument as referred in financial transactions?

Certificate of Deposits

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Bonds

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Stocks

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Commercial Papers

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Solution

The correct option is B Stocks
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. Where as stocks are securities that are a claim on the earnings and assets of a corporation.

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