Investments are debt or equity instruments of another entity mainly held for passive income. passive income are increases in equity that do not arise from the main income-generating operations of an entity.Group of answer choicesFalseNo answer text provided.TrueNo answer text provided.

Which of the following investment referred to as fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental)?*Bank DepositsCurrenciesMutual FundsStocks (Equity)Real EstateInsurance

Relationship between investment and income

Investments in debt securities that the company actively manages and trades for profit are referred to as short-term debt investments in:Multiple ChoiceHeld-to-maturity securities.Available-for-sale securities.Trading securities.Realizable securities.Liquid securities.

Alternative investments are investments other than ownership of traditional asset classes (public equity and fixed-income instruments and cash) and include private capital, real assets, and hedge funds.

Fill in the Blank QuestionFill in the blank question.Certificates of deposit, government bonds, and certain mutual funds are all considered investments.