Financial Instruments That Are Linked to a Specific Instrument,indicator,or Commodity

question 35

Multiple Choice

Financial instruments that are linked to a specific instrument,indicator,or commodity are called:

• A)Direct investments
• B)Portfolio investments
• C)Financial derivatives
• D)Goods
• E)Other investments

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and growth.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to gauge inflation or deflation.

Producer Price Index

An economic indicator that measures the average change over time in the selling prices received by domestic producers for their output.