Group 6: Financial instruments

Which is an example of exchanges traded derivatives?

• Forward

• Futures

• 
  Option

• B and C both

Financial derivatives include

• 
  Stocks

• Bonds

• 
  Futures

• None of the above

Using future contracts to transfer price risk is called

• 
  Diversifying

• 
  Speculating

• 
  Hedging

• Arbitrage

Derivatives contracts that have asymmetric payoffs are

• 
  Futures

• 
  

  Options

• 
  Forwards

• 
  

  Swaps

How many types of preference share?

• 3

• 4

• 5

• 6

One of the most important characteristics of financial claims is that of:

• reversibility

• marketability

• all of the above

• none of the above

Shares are issued by:

• corporate entities

• corporate sector

• ultimate borrowers

• shareholders

What is the correct sentence ?

• The household sector is not able to issue marketable securities, for obvious reasons

• The government sector held by the bank is a contract, a mortgage bond, a negative balance on a bank statement, or some other evidence of debt

• The household sector issues NMD in the main

What does the corporate sector issue NMD in the main ?

• Because it usually borrow in the form of NMD and mainly from banks

• Because most companies are not large enough to be able to issue marketable debt

• Because of the debt obligations of the central government

NNCDs come in various forms, such as:

• call deposits

• fixed deposits

• notice deposits

• all above and so on🫶