Which of the following is not true regarding derivatives?
A) Derivatives create leverage.
B) Derivatives are used to shift risks.
C) The use of derivatives is a fairly recent development.
D) The value of derivatives is derived from some other asset.
E) About 95% of the world's biggest companies use derivatives.

Question

Quizplus · Accepted Answer

The use of derivatives is not a recent development. Derivatives have been used in various forms for centuries, with some of the earliest examples dating back to ancient times for trading goods and financial instruments. Their modern development and widespread use in financial markets have evolved significantly over the past few decades, but they are not a recent invention.

Which of the Following Is Not True Regarding Derivatives