SIE Exam Practice Question 945
Question: 945
All but which of the following are correct regarding subordinated debentures?
Correct Answer: B
Explanation:
In the event of liquidation, subordinated debentures are prioritized lower than other classes of debt. They are unsecured loans which have no collateral, and they are a type of junior debt. Subordinated debentures carry higher risk, but also pays higher interest, than other classes.
More Tests
- SIE Exam Practice Test 1
- SIE Exam Practice Test 2
- SIE Exam Practice Test 3
- SIE Exam Practice Test 4
- SIE Exam Practice Test 5
- SIE Exam Practice Test 6
- SIE Exam Practice Test 7
- SIE Exam Practice Test 8
- SIE Exam Practice Test 9
- SIE Exam Practice Test 10
- SIE Exam Practice Test 11
- SIE Exam Practice Test 12
- SIE Exam Practice Test 13
- SIE Exam Practice Test 14
- SIE Exam Practice Test 15
- SIE Exam Practice Test 16
- SIE Exam Practice Test 17
- SIE Exam Practice Test 18
- SIE Exam Practice Test 19
- SIE Exam Practice Test 20