What financial instrument grants credit to a company?

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Understand the Problem

The question is asking for a term that refers to financial instruments that provide credit to a company. The correct response is identified as bonds.

Answer

Bonds

The final answer is bonds.

Answer for screen readers

The final answer is bonds.

More Information

Bonds are a form of debt instrument where investors lend money to a company, which in turn pays interest and returns the principal at the maturity date.

Tips

A common mistake is confusing stocks with bonds. Stocks represent equity ownership, not a loan or credit.

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