An Example of a Derivative Is A

question 117

Multiple Choice

An example of a derivative is a:

• A) futures contract.
• B) stock.
• C) bond.
• D) fixed-income security.

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Definitions:

Budget System

A systematic process used by businesses and organizations for planning, controlling, and allocating financial resources.

Expected Activities

The projected activities or operations a business plans to undertake, usually within a specific timeframe, often related to budgeting and planning.

Operating Budgets

Operating budgets are detailed projections that outline the expected income and expenditures related to the day-to-day operations of a business for a specific period.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping organizations to manage cash flow and assess liquidity needs.