HomeworkLib
Question

Which of the following are not examples of derivatives? A.) local government bonds B.). credit default...

Which of the following are not examples of derivatives?

A.) local government bonds

B.). credit default swaps

C.) collateralized debt obligations

D.) mutual funds

E.) mortgage backed securities

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The answer is option a and d- local government bonds and mutual funds

Local government bonds and mutual funds are not derivative contracts

0 0
Add a comment
Know the answer?
Add Answer to:
Which of the following are not examples of derivatives? A.) local government bonds B.). credit default...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • More on types of bonds 1- You can distinguish the various types of bonds by their...

    More on types of bonds 1- You can distinguish the various types of bonds by their terms of the contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: (Types of Bonds: Junior Mortgage Bonds/ Debentures/ Subordinate Debentures/ Senior Mortgage Bonds) Description Type of Bond a) These bonds are collateralized securities with first claims in the event of bankruptcy. ? b) These bonds are not backed by any...

  • Dropdown on 1st description: state and local government bonds, us treasury notes, us treasury bills 2nd:bankers...

    Dropdown on 1st description: state and local government bonds, us treasury notes, us treasury bills 2nd:bankers acceptances, commercial papers, money market mutual funds 3rd: eurodollar time deposits, consumer credit, money market mutual funds 4th: common stocks, preferred stocks, corporate bonds 3. Financial instruments Aa Aa Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These inancial instruments can...

  • 1. Credit default swaps contributed to the crisis in all the following reasons except: a. Financial...

    1. Credit default swaps contributed to the crisis in all the following reasons except: a. Financial institutions relied heavily on credit default swaps to protect themselves from default risk. b. Credit defaults swaps relaxed the lending standards of banks. c. Banks used credit default swaps because they were eager to sell them to unwitting consumers. d. All of the above are true. 2. You are the buyer of a call option which expires today. The call premium is $0.75 and...

  • Choose the correct statement. A. Money market mutual funds represent 13 percent of Upper M 1....

    Choose the correct statement. A. Money market mutual funds represent 13 percent of Upper M 1. B. The deposits of commercial banks represent 62 percent of Upper M 1 and 49 percent of Upper M 2. C. In 2017 about 700 commercial banks operated in the United States. D. Securities are U.S. government bonds and other bonds such as mortgage dash backed securities.

  • Prior to the Financial Crisis, rating agencies mistakenly rated Mortgage Backed Securities (MBS) too high because:...

    Prior to the Financial Crisis, rating agencies mistakenly rated Mortgage Backed Securities (MBS) too high because: Historically, mortgages have very low default rates. The payments on the MBS’s were “insured” by credit default swaps. The agencies didn’t account for the increase in sub-prime mortgages. All of the above. Why should credit analysts be concerned if a company’s stock trades below book value? It means the company is probably going bankrupt It means the company will probably incur lots of debt...

  • 1. In financial markets, participants who receive more money than they spend, such as investors, would...

    1. In financial markets, participants who receive more money than they spend, such as investors, would be considered: A. deficit units B. noncompliant units C. surplus units D. indiscernible units represent ownership in a firm or company. A. debt securities B. equity securities C. derivatives securities D. credit securities 3. Facebook shares currently trade in the stock-market under the symbol FB. If Ms. Jones decides to purchase 1,000 shares at the current market price, the transaction would occur in the:...

  • Which of the following statements about U.S. Agency bonds are​ true? I. They are backed by the​ "full faith and​ credit"...

    Which of the following statements about U.S. Agency bonds are​ true? I. They are backed by the​ "full faith and​ credit" of the U.S. government. II. Their risk is almost as low as government notes and bonds. III. Their yields are slightly higher than those of government securities. IV. They are exempt from state and federal taxes.

  • 10. More on types of bonds Aa Aa E A legal document that details the rights...

    10. More on types of bonds Aa Aa E A legal document that details the rights of bondholders and the issuer is called If the legal document just described includes a sinking fund provision, is the bond considered to have more or less default risk, all else being equal? More default risk Less default risk You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based...

  • Which of the following is NOT a way to measure default risk? A. Credit ratings B....

    Which of the following is NOT a way to measure default risk? A. Credit ratings B. Discriminant Analysis C. Examining yield spreads D. Technical Analysis E. All of the above ARE ways to measure default risk.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT