Which of the Following Statements Best Describe a Derivative Contract

question 74

Multiple Choice

Which of the following statements best describe a derivative contract?

• A)Contractual commitments to make a loan up to a stated amount at a given interest rate in the future.
• B)Contingent guarantees sold by an FI to underwrite the performance of the buyer of the guaranty.
• C)Agreement between two parties to exchange a standard quantity of an asset at a predetermined price at a specified date in the future.
• D)Trading in securities prior to their actual issue.
• E)Loans originated by an FI and then sold to other investors with recourse.

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