Asked by Maryann Fitzgerald on Apr 25, 2024
Verified
The smallest component of the fixed-income market is _______ debt.
A) Treasury
B) other asset-backed
C) corporate
D) tax-exempt
E) mortgage-backed
Asset-Backed Debt
Debt securities or obligations that are secured by a pool of underlying assets, such as loans, leases, or receivables.
Fixed-Income Market
The segment of the financial markets where instruments that pay a set return over a period are traded, such as bonds and treasuries.
Corporate Debt
Corporate debt refers to the amount of money that a company borrows from various sources, including bank loans and issuing bonds, to finance its operations and growth.
- Identify the units and instruments associated with the money market.
Verified Answer
AH
Asmara Hashim7 days ago
Final Answer :
B
Explanation :
Other asset-backed debt is typically the smallest component of the fixed-income market compared to more prominent sectors like Treasury, corporate, tax-exempt, and mortgage-backed securities. These other asset-backed securities are a diverse group that can include a variety of loans or receivables other than mortgage loans, making it a smaller and more specialized segment.
Learning Objectives
- Identify the units and instruments associated with the money market.