Financial instruments
A) include debt securities and money market funds.
B) such as derivatives can be used as a way of hedging.
C) must be classified as held-to-maturity securities.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Financial instruments, such as derivatives, can be used to hedge against risks and fluctuations in the market. While debt securities and money market funds are also examples of financial instruments, they do not encapsulate the full range of possibilities. Held-to-maturity classification refers to a specific accounting treatment for debt securities and is not applicable to all financial instruments.

Financial Instruments