Which of the following are types of securities?

Learn and succeed in the WGU BUS5000 C201 Business Acumen Exam. Leverage our detailed quizzes with explanations and insights to enhance your preparation. Get ready to ace your exam!

The correct choice identifies stocks, bonds, and money market instruments as types of securities because these financial instruments represent ownership or a creditor relationship with an entity. Stocks provide ownership in a company, while bonds are loans made to corporations or governments, reflecting a promise to repay those funds with interest. Money market instruments, such as Treasury bills and commercial paper, are short-term debt instruments that also fall under the broader classification of securities.

In contrast, commodities are physical goods such as oil or agricultural products that can be traded but do not fit the definition of securities, which are primarily financial assets. Real estate assets, while valuable investments, also do not classify as securities since they pertain to physical property rather than financial instruments that can be bought or sold on a market. Derivatives are financial contracts whose value is derived from the performance of an underlying asset, index, or rate, and while they are associated with securities, they are a specific type of financial instrument and do not encompass the broader category that includes stocks and bonds.

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