Which of the following is an example of a derivative security?
Example of derivative securities is mortgage backed security. A derivative security is a financial instrument whose value depends upon the value of another asset. The main types of derivatives are futures, forwards, options, and swaps. An example of a derivative security is a convertible bond.
What is a debt security example?
Examples of debt securities are treasury bills, bonds and commercial paper. The borrower pays interest for the use of the money and pays the principal amount on a specified date.
What are types of financial assets Securities )?
Types of Financial Assets
- #1 – Certificate of Deposit (CD)
- #2 – Bonds.
- #3 – Stocks.
- #4 – Cash or Cash Equivalent.
- #5 – Bank Deposits.
- #6 – Loans & Receivables.
- #7 – Derivatives.
- #1 – Current Assets.
How do financial assets contribute to a country’s productive capacity?
Feedback: Financial assets indirectly contribute to the country’s productive capacity because these assets permit individuals to invest in firms and governments. This in turn allows firms and governments to increase productive capacity.
Which of the following represents a real asset?
The real assets definition refers to value-generating physical assets that your business owns. Common examples include land, buildings, inventory, precious metals, commodities, real estate, land and machinery. These physical assets are important for your business because they carry some type of intrinsic value.
Is gold a real asset?
Unlike real assets, which have intrinsic value, financial assets derive their value from a contractual claim on an underlying asset that may be real or intangible. Technically speaking, though, these ETFs are financial assets, while the actual gold or silver bullion they own is the real asset.
Is gold an asset or liability?
Gold is a highly liquid yet scarce asset, and it is no one’s liability. It is bought as a luxury good as much as an investment.
Can you lose money with stash?
Keep in mind that in the Stash platform you can never lose more money in the stock market than you invested in the first place. Even though risk is an inherent part of investing, there are ways to minimize risk. One way to do so is through diversification.