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:

Adoptive Families

Families where one or more children have been legally adopted, creating a familial bond.

Twin-Study Method

A research design used to estimate the genetic and environmental influences on behavior by comparing the similarities between identical and fraternal twins.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing thoughts, motivations, and behaviors across situations and time.