Type of financial security having payoffs which are connected to some securities issued some time back is classified as

A linked security
B previous security
C payoff security
D derivative security

Correct Answer: derivative security

Type of financial security having payoffs which are connected to some securities issued some time back is classified as derivative security. A derivative security is a financial instrument whose value depends upon the value of another asset. The main types of derivatives are futures, forwards, options, and swaps. An example of a derivative security is a convertible bond.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

When two portfolios have identical values and payoffs then it is classified as
A binomial parity relationship
B put parity relationship
C put option parity relationship
D put call parity relationship
Financial securities which are issued to finance government expenditures and national debt are classified as
A treasury notes and bonds
B contraction bonds
C expansion bonds
D dollar bonds
Money market where securities are issued by governments to obtain funds for short term is classified as
A money market instruments
B capital market instruments
C counter instruments
D long term instruments
Type of financial security whose payoff is linked to any other security is called
A strong security
B semi-strong security
C derivate security
D non-derivate security
Type of financial security in which loans are secured by borrower's property is classified as
A municipal bonds
B corporate bonds
C U.S treasury bonds
D mortgages
Type of financial security in which firms do not borrow money rather lease their assets is classified as
A leases
B preferred stocks
C common stocks
D corporate stocks
Type of accounting, which reports financial and non-financial data about cost of material and acquiring of resources is classified as
A material accounting
B cost accounting
C supplies accounting
D business accounting
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A T-bills
B Securities
C Bond
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B liability transformers
C issuing transformers
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A money market
B capital market
C transaction market
D global market

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