Which instrument is listed as a capital market instrument alongside ordinary shares and bonds?

Which instrument is listed as a capital market instrument alongside ordinary shares and bonds?

• A. Mortgage
• B. Bills of exchange
• C. Commercial paper
• D. Mezzanine financing

Answer: (A)

Capital markets involve long-term funding, with instruments designed to raise money for more than a year. Among the options, a mortgage is a long-term debt secured on real estate, fitting the long-horizon nature of capital-market financing (and such loans can be securitized into mortgage-backed securities). Bills of exchange and commercial paper are classic money-market instruments because they mature quickly, within a year. Mezzanine financing is a longer-term, niche hybrid form of funding, not as standard a capital-market instrument in basic BA1 contexts. So the mortgage best aligns with being listed alongside ordinary shares and bonds in the capital market.

Capital markets involve long-term funding, with instruments designed to raise money for more than a year. Among the options, a mortgage is a long-term debt secured on real estate, fitting the long-horizon nature of capital-market financing (and such loans can be securitized into mortgage-backed securities). Bills of exchange and commercial paper are classic money-market instruments because they mature quickly, within a year. Mezzanine financing is a longer-term, niche hybrid form of funding, not as standard a capital-market instrument in basic BA1 contexts. So the mortgage best aligns with being listed alongside ordinary shares and bonds in the capital market.