Two Important Characteristics of Financial Instruments Are

question 17

Multiple Choice

Two important characteristics of financial instruments are:

• A)information communication and risk neutrality.
• B)risk neutrality and liquidity.
• C)standardization and information communication.
• D)liquidity and standardization.

---

Definitions:

Busy Intersection

A junction where multiple roads meet, often characterized by a high volume of vehicle and pedestrian traffic, making it a key focal point for transportation flow.

Default

Failure to fulfill an obligation, especially to repay a loan on time, which can result in legal actions or loss of asset privileges.

No-action Condition

An experimental or control condition where no intervention is made, commonly used in research to measure the effect of not implementing a certain action.

Choice Architecture

The organization and presentation of choices in a way that influences the decision-making process of individuals.