ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial assets
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Certificate of deposit
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Risk
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Diversification
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Detailed explanation-1: -A financial instrument is a real or virtual document representing a legal agreement involving any kind of monetary value. Financial instruments may be divided into two types: cash instruments and derivative instruments.
Detailed explanation-2: -Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings.
Detailed explanation-3: -They include bills, bonds, notes, negotiable certificates of deposit, commercial paper, debentures, asset-backed securities, and similar instruments usually traded in the financial markets.
Detailed explanation-4: -financial asset a contractual claim to something of value; modern economies have four main types of financial assets: bank deposits, stocks, bonds, and loans.