Which of the Following Are NOT Examples of Derivatives

question 46

Multiple Choice

Which of the following are NOT examples of derivatives?

• A) Stock options.
• B) Interest-only strips.
• C) Debt instruments backed by pools of mortgages.
• D) Repurchase agreements.

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Definitions:

Investments

Assets purchased with the aim of generating income or appreciating in value over time, such as stocks, bonds, real estate, or other investments.

Equity Method

An accounting technique used to record investments in other companies where the investor holds significant influence but not full control or majority ownership.

Dividends

Payments made by a corporation to its shareholders, typically from profits, on a per-share basis.

Reduction

The act of decreasing or lowering in amount, quantity, or degree.