Forward contracts, currency swaps, options, and futures all belong to a group of financial instruments called:
A)bonds.
B)derivatives.
C)loans.
D)deposits.
E)stocks.

Question

Quizplus · Accepted Answer

Derivatives are financial instruments whose value is derived from the value of an underlying asset or group of assets. Forward contracts, currency swaps, options, and futures are all types of derivatives because their values depend on the performance of underlying assets such as commodities, currencies, stock indices, or interest rates.

Forward Contracts, Currency Swaps, Options, and Futures All Belong to a Group