- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 2. Corporate Governance Mechanisms
CFA Practice Question
______ are the terms and conditions of lending agreements.
A. Indentures
B. Covenants
C. Collaterals
Explanation: They enable creditors to specify the actions an issuer is obligated to perform or be prohibited from performing.
User Contributed Comments 1
| User | Comment |
|---|---|
| nmech1984 | I think indentures are the T&Cs. Covenants are part of the indenture. Any other idea? |