Derivatives Are Contracts Whose Value Is Derived from Some Other

question 76

True/False

Derivatives are contracts whose value is derived from some other entity.

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Definitions:

GIC

A Guaranteed Investment Certificate, particular to the Canadian market, ensures investors a promised rate of return within a set duration.

Semi-annual Interest

Interest that is calculated and paid twice a year on an investment or loan.

Invested

The deployment of funds with the intention of acquiring income or profit.

Regular-interest

Regular interest refers to the consistent periodic return earned on an investment or paid on a loan as determined by the interest rate.