Here are some MCQs on Derivatives and Futures
1) What is the main purpose of a derivative?
a) To provide a way to take a position on an underlying asset without directly owning it
b) To provide a way to borrow money
c) To provide a way to invest in stocks
d) To provide a way to hedge against risk
2) Which of the following is an example of a derivative?
a) Stocks
b) Bonds
c) Options
d) Real estate
3) What is a futures contract?
a) A contract to buy or sell an asset at a specific price on a future date
b) A contract to borrow money
c) A contract to invest in stocks
d) A contract to hedge against risk
4) True or False: Futures contracts are standardized and traded on organized exchanges.
5) Which one of the following is NOT a type of derivative?
a) Futures
b) Options
c) Swaps
d) Stocks
