Economics · Corporate Finance
Which of the following best describes a debenture?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A government-backed security that offers tax exemption on interest earned.
- 2A short-term unsecured money market instrument issued by commercial banks.
- 3A long-term debt instrument issued by a company acknowledging a loan under its seal.✓
- 4An equity share that grants ownership and voting rights to the holder.
Correct answer
A long-term debt instrument issued by a company acknowledging a loan under its seal.
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