Inputs that are derived from or corroborated by observable market data by correlation or other means are an example of a:
A)Level 1 input.
B)Level 2 input.
C)Level 3 input.
D)Level 4 input.

Question

Quizplus · Accepted Answer

Level 2 inputs are those that are directly or indirectly observable, such as market prices and rates that can be derived from observable data. Therefore, inputs that are derived from or corroborated by observable market data by correlation or other means fit the definition of a Level 2 input.

Inputs That Are Derived from or Corroborated by Observable Market