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In the context of financial instruments, what is the primary difference between cash instruments and derivative instruments?
  • a)
    Cash instruments have fixed values, while derivative instruments have variable values.
  • b)
    Cash instruments are based on assets, while derivative instruments are based on liabilities.
  • c)
    Cash instruments are always traded on exchanges, while derivative instruments are traded over-the-counter.
  • d)
    Cash instruments are influenced by markets, while derivative instruments are not influenced by any underlying components.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
In the context of financial instruments, what is the primary differenc...
The primary difference between cash instruments and derivative instruments is that cash instruments have fixed values, while derivative instruments have variable values. Cash instruments include assets like stocks and bonds, and their values are directly influenced by market conditions. Derivative instruments, on the other hand, derive their value from underlying assets, interest rates, or indices, and their values can fluctuate based on these factors.
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In the context of financial instruments, what is the primary difference between cash instruments and derivative instruments?a)Cash instruments have fixed values, while derivative instruments have variable values.b)Cash instruments are based on assets, while derivative instruments are based on liabilities.c)Cash instruments are always traded on exchanges, while derivative instruments are traded over-the-counter.d)Cash instruments are influenced by markets, while derivative instruments are not influenced by any underlying components.Correct answer is option 'A'. Can you explain this answer?
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In the context of financial instruments, what is the primary difference between cash instruments and derivative instruments?a)Cash instruments have fixed values, while derivative instruments have variable values.b)Cash instruments are based on assets, while derivative instruments are based on liabilities.c)Cash instruments are always traded on exchanges, while derivative instruments are traded over-the-counter.d)Cash instruments are influenced by markets, while derivative instruments are not influenced by any underlying components.Correct answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In the context of financial instruments, what is the primary difference between cash instruments and derivative instruments?a)Cash instruments have fixed values, while derivative instruments have variable values.b)Cash instruments are based on assets, while derivative instruments are based on liabilities.c)Cash instruments are always traded on exchanges, while derivative instruments are traded over-the-counter.d)Cash instruments are influenced by markets, while derivative instruments are not influenced by any underlying components.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the context of financial instruments, what is the primary difference between cash instruments and derivative instruments?a)Cash instruments have fixed values, while derivative instruments have variable values.b)Cash instruments are based on assets, while derivative instruments are based on liabilities.c)Cash instruments are always traded on exchanges, while derivative instruments are traded over-the-counter.d)Cash instruments are influenced by markets, while derivative instruments are not influenced by any underlying components.Correct answer is option 'A'. Can you explain this answer?.
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