Banking Awareness Test for IBPS, RBI, SBI, NABARD & other Bank Examinations

Q.  Which of the following is a long-term, unsecured debt instrument with a lower claim on assets and income than other classes of debt?

a. Trustee bond
b. Income bond
c. A junk bond
d. A subordinated debenture


ANSWER: See Answer
 
A subordinated debenture is a long-term, unsecured debt instrument with a lower claim on assets and income than other classes of debt.
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