Financial instruments that are linked to a specific instrument,indicator,or commodity are called:
A)Direct investments
B)Portfolio investments
C)Financial derivatives
D)Goods
E)Other investments

Question

Quizplus · Accepted Answer

Financial derivatives are financial instruments that are linked to a specific instrument, indicator, or commodity. Examples of financial derivatives include options, futures, swaps, and forwards. These instruments derive their value from underlying assets, and are often used for hedging or speculative purposes.

Financial Instruments That Are Linked to a Specific Instrument,indicator,or Commodity