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:

Balanced Government

A system of governance where power is distributed among different branches or layers to ensure no single entity has excessive control.

John Adams

was the second president of the United States, serving from 1797 to 1801, and a key figure in the early years of the American Republic.

Pre-Revolutionary Elite

Refers to the social class that held most of the power and wealth in a society before a significant revolution, often comprising nobility and high-ranking officials.

Pennsylvania

A state located in the northeastern and Mid-Atlantic regions of the United States, known for its rich history, industrial heritage, and as the "Keystone State" due to its central location among the original Thirteen Colonies.