Financial Instruments and Loan Types Quiz

Debt instrument representing a loan where the issuer owes the bondholder a debt and is obligated to repay the principal and interest.

Loan with a constant interest rate and monthly payments that do not change.

Equity instrument conferring ownership and voting rights in a corporation, often with dividends.

Financial contract deriving its value from the performance of an underlying asset, such as stocks or commodities.

Gradual repayment of a loan through scheduled, fixed payments covering both principal and interest.

Debt security issued by the U.S. government, considered low-risk and often used as a benchmark for other investments.

Debt security backed by a pool of mortgage loans, providing investors with a claim on the interest and principal payments.

Bond that the issuer can redeem before its maturity date, providing flexibility but introducing call risk.

Derivative contract obliging the buyer to purchase, or the seller to sell, an asset at a predetermined price on a specified future date.

Investment fund mirroring the performance of a market index, providing diversification and lower fees.

Loan supported by collateral, reducing lender risk and potentially lowering interest rates for the borrower.

Investment fund focusing on short-term, high-quality, and low-risk securities to maintain liquidity and preserve capital.