Two important characteristics of financial instruments are:
A)information communication and risk neutrality.
B)risk neutrality and liquidity.
C)standardization and information communication.
D)liquidity and standardization.

Question

Quizplus · Accepted Answer

Standardization and information communication are two important characteristics of financial instruments. Standardization refers to the process of making financial instruments uniform in terms of their features, such as their maturity date, interest rate, and face value. This makes it easier for investors to compare and trade financial instruments. Information communication refers to the process of providing investors with information about financial instruments, such as their risk and return characteristics. This information helps investors to make informed decisions about which financial instruments to invest in.

Two Important Characteristics of Financial Instruments Are