Derivatives receive their value based on particular assets such as commodities or foreign exchange.

Name: Derivatives receive their value based on particular assets such as commodities or foreign exchange.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Derivatives are financial instruments whose value is derived from the value of an underlying asset or group of assets, such as commodities, currencies, stocks, or bonds. The value of the derivative depends on fluctuations in the value of the underlying asset.

Derivatives Receive Their Value Based on Particular Assets Such as Commodities