Correct option is B
The correct answer is (b) Securities
Explanation:
• Securities are financial instruments that represent an investment and a promise of future financial returns.
• They include equity (stocks), debt instruments (bonds), and derivatives, all of which are backed by the issuer’s promise to pay returns over time.
• Securities are tradable and are often used by companies and governments to raise capital.
• They are typically documented on paper or in electronic form and promise future cash flows to the investor.
Information Booster:
• The term "security" encompasses both ownership (like shares) and creditor relationships (like bonds).
• Securities can be classified into debt securities, equity securities, and derivative instruments.
• Examples include Treasury bills, government bonds, corporate bonds, stocks, etc.
Additional Knowledge:
Deposits (Option a)
• Generally refer to funds placed in banks for safekeeping and interest earning.
• Not tradable securities and not referred to as "papers" in the investment context.
Bonds (Option c)
• Are a type of security representing debt.
• While they fit the definition, the term “securities” is broader and includes bonds.
Capitals (Option d)
• Refers to wealth or assets available for use or investment.
• Not a financial instrument itself, hence doesn't match the question’s description.