Consider the following: 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap. Which of the…

Consider the following: 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap. Which of the above is/are considered financial instruments?
  1. 1 only
  2. 2 and 3 only
  3. 1, 2 and 3
  4. 1 and 3 only

Solution

ETFs and currency swaps are financial instruments. Motor vehicles are physical/real assets — not financial instruments.

Asked in: UPSC Prelims 2024

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