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  • Banking Test (Commerce)
  • A financial contract that derives its value from another ...
Multiple choice

A financial contract that derives its value from another financial product/commodity is called

  1. commercial paper

  2. certificate of deposit

  3. derivatives

  4. stand by facility

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A derivative is a financial contract whose value is dependent upon or derived from an underlying asset, such as stocks, bonds, or commodities.

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