The type of markets in which derivative securities are traded is classified as ___________?
Correct answer: A. derivative security markets
- A. derivative security markets
- B. trading markets
- C. classified markets
- D. non-trading markets
Explanation
Derivative security markets are specifically markets for contracts whose value is derived from an underlying asset, such as futures, options, and swaps. The other choices are not standard classifications of these markets.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
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.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
In the money markets, the excess supply of funds from agents is for _____________?
The type of financial security having payoffs which are connected to some securities issued some time back, is classified as ____________?
The depository institutions that concentrate loans in one segment such as consumer loans are considered as ___________?
The financial intermediaries offering savings plan to individuals and funds are exempted from taxation are considered as _____________?
The institutions that facilitate channeling of funds and all the related functions are classified as ___________?
The reduction of risk by holding large number of securities in portfolio of assets is classified as __________?