n NISM Certifications
X NISM Series X
Medium

What is a financial product whose value is derived from an underlying asset called?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Derivative

    Correct answer

  2. B

    Financial Asset

  3. C

    Convertible Debenture

  4. D

    Insurance

Why this is the answer

Derivatives derive their value from underlying assets like stocks, commodities, or currencies.

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