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CLEP Business Law

Category - Miscellaneous

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A short-term debt security with a maturity of five years or less is known as a:

Note.
Voucher.
Lien.
Debenture.
Bond.

Explanation

Answer: A. A short-term debt security with a maturity of five years or less is known as a note. A debt security is a debt instrument of a corporation, government or organization. Other types of debt securities include corporate bonds, governmental bonds, and treasury bills.

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