Correct option is D
A financial instrument is any asset that can be traded, such as stocks, bonds, derivatives, or other contracts that represent a financial value. Let's analyze each option in this context:
1. Exchange-Traded Funds (ETF): Financial Instrument. An ETF is a type of investment fund that is traded on stock exchanges, much like stocks. ETFs hold assets such as stocks, commodities, or bonds and are a financial instrument that allows investors to buy or sell shares of the fund throughout the trading day.
2. Motor vehicles: Not a Financial Instrument. Motor vehicles are physical assets and are not considered financial instruments. They do not represent a financial contract or investment but rather a tangible good.
3. Currency swap: Financial Instrument. A currency swap is a financial derivative used in the foreign exchange market. It involves the exchange of principal and interest in one currency for the same in another currency. Currency swaps are used to manage exposure to fluctuations in exchange rates and are a key tool in international finance.
