Which of the Following Is Not a Distinguishing Characteristic of a Derivative

question 60

Multiple Choice

Which of the following is not a distinguishing characteristic of a derivative instrument?

• A) Derivative instruments have terms that require or permit net settlement.
• B) Derivative instruments have a low initial net investment.
• C) Derivative instruments are highly effective throughout their term.
• D) Derivative instruments have one or more underlyings and notional amounts.

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Definitions:

Frictionally Unemployed

Individuals who are temporarily out of work while moving between jobs or looking for their first jobs.

Voluntarily Quits

The act of an employee choosing to leave their job out of their own will, often for reasons such as a better opportunity, personal reasons, or dissatisfaction with the current job.

Full Employment

A situation where all available labor resources are being used in the most efficient way possible, leading to no cyclical unemployment.

Frictional Unemployment

Short-term unemployment that arises from the process of workers moving between jobs or into the workforce.