Consider the following: 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap Which of the above is/are considered financial instruments?
Correct answer: D
Explanation
* Exchange-Traded Funds (ETFs): ETFs are baskets of securities (like stocks) that are traded on stock exchanges, similar to individual stocks. They represent a financial instrument.
* Motor vehicles: Motor vehicles are tangible assets, not financial instruments. Financial instruments represent claims to assets or cash flows.
* Currency swap: A currency swap is a derivative contract where two parties exchange principal and interest payments in different currencies. It is a type of financial instrument.
Therefore, only ETFs and currency swaps are considered financial instruments.