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Which Statement Best Describes How An Investor Makes Money Off Debt?
Which Statement Best Describes How An Investor Makes Money Off Debt?
A. An investor makes money by issuing bonds.
B. An investor makes money by earning interest.
C. An investor makes money by raising capital.
D. An investor makes money by being repaid for the principal.
The correct answer is (B). An investor makes money by earning interest.
Explanation
An investor makes money by earning interest, which is the cost of borrowing money or the return on an investment. When an investor lends money to a borrower, such... More

