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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Letha

2 months ago

I heard the exam has a new question: 'What do you call a financial instrument that's always late? A Derivative-ly.'

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Mendy

9 days ago

C) Equity security

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Sean

10 days ago

B) Fixed income security

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Alica

23 days ago

A) Derived security

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Adell

2 months ago

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

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Harrison

1 months ago

User 2

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Eliseo

1 months ago

User 1

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Myra

2 months ago

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

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Malcolm

2 months ago

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

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Kallie

2 months ago

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

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Princess

2 months ago

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

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Tomoko

17 days ago

I always get confused between derivative and fixed income securities.

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Casie

19 days ago

Derivative securities can be quite complex to understand.

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Sheridan

1 months ago

I wasn't sure about that one, thanks for clarifying.

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Peggie

2 months ago

Yes, you're right! It's a derivative security.

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Daniel

3 months ago

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

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Henriette

3 months ago

I think the answer is A) Derived security.

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