Financial Instruments: Types and Characteristics

A financial instrument has a monetary value and is traded on the ______ market.

A ______ is a financial instrument that has monetary value and is traded on the stock market.

Derivative instruments have values determined from ______ assets.

A ______ is a contract between two parties that involves customizable derivatives.

Both ______ and loans are considered cash instruments.

Financial instruments are contracts for monetary ______ that can be purchased, traded, created, modified, or settled.

An ______ is an agreement between two parties in which the seller grants the buyer the right to purchase or sell a certain number of derivatives at a predetermined price for a specific period.

A ______ is a derivative agreement between two parties that involves the swapping of interest rates where each party agrees to pay other interest rates on their loans in different currencies.

CURRENCY AGREEMENTS categories include ______, outright forwards, and currency swap.

DEBT-BASED FINANCIAL INSTRUMENTS are categorized as mechanisms that an entity can use to increase the amount of ______ in a business.

EQUITY-BASED FINANCIAL INSTRUMENTS are categorized as mechanisms that serve as legal ______ of an entity.

FOREIGN EXCHANGE INSTRUMENTS are financial instruments that are represented on the foreign market and primarily consist of ______ agreements and derivatives.