Question

features of financial instruments​

Answer 1

Answer:

Three functions:

• Financial instruments act as a means of payment (like money).
• Financial instruments act as stores of value (like money).
• Financial instruments allow for the transfer of risk (unlike money).

Answer 2

Explanation:

Financial instruments normally provide returns in the form of dividends (shares and units in securities funds) or interest (interest-bearing instruments). The price of the instrument may also increase or decrease in relation to the price paid when the investment was made.

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