n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is an example of a 'Derivatives' instrument?

Practice question from NISM XXI A for PMS - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Equity shares

  2. Futures contract

    Correct answer

  3. C

    Fixed deposit

  4. D

    Savings account

Why this is the answer

Futures are derivative contracts whose value depends on the price of the underlying asset, such as commodities or securities.

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