Consider the following:
- Exchange-Traded Funds (ETF)
- Motor vehicles
- Currency swap
Which
of the above is/are considered financial instruments?
(a). 1 only
(b). 2 and 3 only
(c). 1, 2 and 3
(d). 1 and 3 only
Explanation:
Exchange-Traded Funds (ETFs) and Currency
swap are considered financial instruments.
Exchange-Traded Funds (ETFs): These are
financial instruments that track an index, commodity, bond, or basket of
assets. They are traded on stock exchanges.
Motor vehicles: These are tangible
assets, not financial instruments. They represent physical property.
Currency swap: This is a financial
instrument involving the exchange of one currency for another at a specified
exchange rate.