What Factor Is Important in Classifying an Investment at Fair

question 63

Multiple Choice

What factor is important in classifying an investment at fair value through profit or loss?

• A)Whether the instrument is a debt, equity or derivative instrument.
• B)Whether the instrument has a set maturity date.
• C)What is the business model within which the investments are held?
• D)Whether the instrument generates dividends.

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Definitions:

Double Coincidence

A situation in a barter economy where two parties each hold an item the other wants, allowing them to make an exchange without the use of money.

Federal Deregulation

The process of reducing or eliminating government rules and restrictions on the business sector by federal authorities.

Savings And Loan

Financial institutions that primarily accept savings accounts and provide mortgage lending, historically focusing on residential mortgages.

Taxpayers

Individuals or entities that are obliged to pay taxes to a government authority based on their income, property, or consumption.