What term is used for a financial obligation that typically requires repayment with interest?

The term that refers to a financial obligation typically requiring repayment with interest is known as a debt instrument. Debt instruments are essentially financial contracts that establish a relationship between the borrower and lender, where the borrower is obliged to repay the borrowed amount along with any agreed-upon interest within a specified period. Common examples of debt instruments include loans, bonds, and promissory notes.

In contrast, investment refers to the act of allocating resources, usually money, with the expectation of generating an income or profit in the future, but it does not inherently imply a repayment obligation. An equity stake represents ownership in an asset or company, granting rights to a portion of the profits but not a fixed repayment obligation. A financial asset is a broader category that includes various instruments that hold monetary value, but it can encompass both debt instruments and equity stakes, further demonstrating that it does not specifically refer to the obligation to repay with interest.

Thus, the correct choice clearly highlights the nature of repayment and interest that characterizes debt instruments, distinguishing them from other financial concepts.