The markets in which the derivatives are traded, are classified as ___________?
Correct answer: D. derivative securities markets
- A. assets backed market
- B. cash flow backed markets
- C. mortgage backed markets
- D. derivative securities markets
Explanation
Derivatives such as futures, options, forwards and swaps are traded in derivative securities markets. The other choices refer to specific asset-backed or mortgage-backed market categories, not derivatives generally.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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