Financial Instruments (ETF, Currency Swap)
Question
Consider the following: Which of the above is/are considered financial instruments?
- 1.
Exchange-Traded Funds (ETF)
- 2.
Motor vehicles
- 3.
Currency swap
Options
1 only
1 and 2 only
1 and 3 only
1, 2 and 3
Explanation
Exchange-Traded Funds (ETFs) and Currency swaps are classic financial instruments representing an equity fund and a derivative contract, respectively. A motor vehicle is a physical asset or consumer good; it carries depreciation and physical utility, but it is not a tradable financial instrument representing a capital or debt claim.
Answer: (c).
Question details
Year
2024
Paper
GS Paper 1
Question
Q44
Subject
Economy
Sub-topic
Financial Markets & Instruments
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
SEBI Exchange Traded Funds Guidelines / Derivatives Market Instruments
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