Which of the Following Best Describes the Difference Between a Simple

Which of the following best describes the difference between a simple financial instrument and a compound financial instrument?

A) A simple financial instrument consists of only one financial asset/financial liability/equity instrument while a compound financial instrument contains both a liability and an equity element
B) A simple financial instrument accrues interest using simple interest formula while the compound financial instrument calculates interest on the compound formula
C) The fair value of a simple instrument is calculated quarterly while the fair value of a compound instrument accrues daily
D) A simple financial instrument has a less complex fee structure