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Debt Instrument(s)
Categories: Economics,
Existing debt instruments typically arise out of contractual relationships under which an institutional unit (the debtor) has an unconditional liability to another institutional unit (the creditor) to repay principal with or without interest, or to pay interest without principal. These instruments include debt securities, loans, trade credit, and currency and deposits. debt instruments may also be created by the force of lawin particular, obligations to pay taxes or to make other compulsory paymentsor through rights and obligations that results in a debtor accepting an obligation to make future payment(s) to a creditor.
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