Question

Which of the following is NOT considered a derivative transaction?

a.

Structured debt and deposits

b.

Swaps

c.

Corporate Bonds

d.

Futures

Posted under IC 89 Management Accounting

Answer: (c).Corporate Bonds Explanation:Derivative transactions include various financial contracts such as structured debt and deposits, swaps, futures, options, caps, floors, and forwards. Corporate Bonds are not derivatives; they represent debt instruments.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Which of the following is NOT considered a derivative transaction?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of using derivatives in hedging risks?

View solution

Q. What is a Forward Rate Agreement (FRA) used for?

View solution

Q. What is another term for Financial Derivatives?

View solution

Q. How are exchange-traded derivatives characterized?

View solution

Q. What is the classification of derivatives based on the underlying assets?

View solution

Q. What is a basic feature of derivatives?

View solution

Q. What is the usual characteristic of the notional face value in derivatives?

View solution

Q. What is an Embedded Derivative?

View solution

Q. What is the purpose of a Commodity Derivative?

View solution

Q. What characterizes Over the Counter (OTC) Derivatives?

View solution

Q. What are Exchange-Traded Derivatives?

View solution

Q. How are prices typically handled in Exchange-Traded Derivatives?

View solution

Q. How do speculators use derivatives?

View solution

Q. What happened in 1995 that brought notoriety to speculative trading in derivatives?

View solution

Q. How do investors use derivatives for risk management?

View solution

Q. What is one purpose of providing leverage in derivatives trading?

View solution

Q. In what situation do investors use derivatives for speculation?

View solution

Q. Why might a business firm use derivatives?

View solution

Q. What is the adverse effect regarding the use of derivatives?

View solution

Q. What are the two classes of derivative contracts?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

Professional Communication

Hone your communication skills with our Professional Communication category. Enhance...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...