Question

Financial instruments (25) A) are created to transfer risks that are difficult to predict. B) are created to transfer risks that are relatively easy to predict. C) require certainty of an event to be able to transfer risk. D) eliminate the risk from uncertainty, they do not transfer it.

Answer 1

it should be noted that financial instruments are created to transfer risks that are difficult to predict.

What are financial instruments?

financial instruments can be regarded as contract that exist between individuals/parties which is accessing monetary value.

With these financial instrument , transfer risks in the financial domains can be predicted.

Examples of financial instrument are:

• cheques
• shares
• stocks, bonds

Learn more about financial instrument at;

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