What is the name given to the financial contract whose value comes fro

QUESTION

What is the name given to the financial contract whose value comes from a wide range of sources, including stocks, loans, and market indexes, and whose investors pay a set price in return for possible profits later?

A) derivative
B) pension fund
C) certificate of deposit
D) Super-NOW
E) time deposit

ANSWER

Answer: A
Explanation: A) A derivative is a financial contract whose value comes from a wide range of sources, including stocks, loans, and market indexes, and whose investors pay a set price in return for possible profits later.