American Bankers Association Exam CTFA Topic 8 Question 67 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 67
Topic #: 8

[All CTFA Questions]

Financial instrument whose return is derived from the return on another instrument is known as a/an:

ADerived security

BFixed income security

CEquity security

DMoney market security

Show Suggested Answer

Suggested Answer: C

by Glory at Jun 03, 2024, 07:01 AM

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Adell

10 days ago

Money market security? Really? I think I need to brush up on my financial instrument knowledge.

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Myra

10 days ago

I'm not sure, but I think it could also be D) Money market security.

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Malcolm

12 days ago

Equity security? No way, this is clearly a derivative we're talking about!

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Kallie

13 days ago

Hmm, I'd go with fixed income security. Doesn't that sound right?

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Princess

18 days ago

A derivative security, of course! That's the correct answer.

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Daniel

23 days ago

I agree with Henriette, because a derived security's return is based on another instrument.

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Henriette

24 days ago

I think the answer is A) Derived security.

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