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Management · Q242

International Finance and Treasury

Graduate and Post Graduate · Management · question 242

Q242

Financial instruments such as treasury bonds and notes have

A.
lesser cost fluctuations
B.
wider price fluctuations
Answer
C.
less price fluctuations
D.
wider cost fluctuations

Answer: Option B

Solution

Answer: Option B
Solution:
Financial instruments such as treasury bonds and notes have wider price fluctuations. A financial instrument is a monetary contract between parties. We can create, trade, or modify them. We can also settle them. A financial instrument may be evidence of ownership of part of something, as in stocks and shares. Bonds, which are contractual rights to receive cash, are financial instruments.