Nowadays we frequently read news items about Derivatives as used in the world of finance and money market. Which of the

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Q 1579123916.     Nowadays we frequently read news items about Derivatives as used in the world of finance and money market. Which of the following statement(s) correctly describes what a derivative is and how it affects money/finance markets?
I. Derivatives enable individuals and companies to insure themselves against financial risk.
II. Derivatives are like fixed deposits in a bank and are the safest way to invest ones idle money lying in a bank.
III. Derivatives are the financial instruments which were used in India even during the British Raj.




A

Only III

B

Only II

C

Only I

D

All of the above

E

None of the above

HINT


Solution
(Provided By a Student and Checked/Corrected by EXXAMM.com Team)

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