{"id":92119,"date":"2025-06-01T11:15:16","date_gmt":"2025-06-01T11:15:16","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=92119"},"modified":"2025-06-01T11:15:16","modified_gmt":"2025-06-01T11:15:16","slug":"consider-the-following-exchange-traded-funds-etf-motor-vehicles","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-exchange-traded-funds-etf-motor-vehicles\/","title":{"rendered":"Consider the following :\n Exchange-Traded Funds (ETF) Motor vehicles"},"content":{"rendered":"

Consider the following :<\/p>\n

    \n
  1. Exchange-Traded Funds (ETF)<\/li>\n
  2. Motor vehicles<\/li>\n
  3. Currency swap<\/li>\n<\/ol>\n

    Which of the above is\/are considered financial instruments ?<\/p>\n

    [amp_mcq option1=”1 only” option2=”2 and 3 only” option3=”1, 2 and 3 only” option4=”1 and 3 only” correct=”option4″]<\/p>\n

    \n
    \n
    This question was previously asked in<\/div>\n
    UPSC IAS – 2024<\/div>\n<\/div>\n
    Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
    \nThe correct option is D.
    \n<\/section>\n
    \nA financial instrument is a monetary contract between parties. They are broadly classified as cash instruments (like currency, deposits, loans, bonds, stocks) or derivative instruments (like futures, options, swaps).
    \n1. Exchange-Traded Funds (ETF): An ETF is a type of investment fund that trades on stock exchanges. It represents ownership in a portfolio of underlying assets. ETFs are securities and are considered financial instruments.
    \n2. Motor vehicles: A motor vehicle is a physical asset (a tangible good). It is not a financial instrument. While financing related to buying a vehicle (like a car loan) or insuring it involves financial instruments, the vehicle itself is not one.
    \n3. Currency swap: A currency swap is a derivative contract where two parties exchange principal and interest payments in different currencies. It is a type of financial derivative and thus a financial instrument.
    \n<\/section>\n
    \nFinancial instruments facilitate the flow of capital and allocation of risk in the economy. They allow entities to raise funds, manage risk, and invest. Physical assets like vehicles, real estate, or commodities themselves are not financial instruments, although contracts related to their ownership or transfer (like property deeds, futures contracts on commodities) can be financial instruments.
    \n<\/section>\n","protected":false},"excerpt":{"rendered":"

    Consider the following : Exchange-Traded Funds (ETF) Motor vehicles Currency swap Which of the above is\/are considered financial instruments ? [amp_mcq option1=”1 only” option2=”2 and 3 only” option3=”1, 2 and 3 only” option4=”1 and 3 only” correct=”option4″] This question was previously asked in UPSC IAS – 2024 Download PDFAttempt Online The correct option is D. … <\/p>\n

    Detailed SolutionConsider the following :
    \n Exchange-Traded Funds (ETF) Motor vehicles<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1103,1120,1190],"class_list":["post-92119","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1103","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nConsider the following : Exchange-Traded Funds (ETF) Motor vehicles<\/title>\n<meta name=\"description\" content=\"The correct option is D. A financial instrument is a monetary contract between parties. They are broadly classified as cash instruments (like currency, deposits, loans, bonds, stocks) or derivative instruments (like futures, options, swaps). 1. Exchange-Traded Funds (ETF): An ETF is a type of investment fund that trades on stock exchanges. It represents ownership in a portfolio of underlying assets. ETFs are securities and are considered financial instruments. 2. Motor vehicles: A motor vehicle is a physical asset (a tangible good). It is not a financial instrument. While financing related to buying a vehicle (like a car loan) or insuring it involves financial instruments, the vehicle itself is not one. 3. Currency swap: A currency swap is a derivative contract where two parties exchange principal and interest payments in different currencies. It is a type of financial derivative and thus a financial instrument.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-exchange-traded-funds-etf-motor-vehicles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following : Exchange-Traded Funds (ETF) Motor vehicles\" \/>\n<meta property=\"og:description\" content=\"The correct option is D. A financial instrument is a monetary contract between parties. They are broadly classified as cash instruments (like currency, deposits, loans, bonds, stocks) or derivative instruments (like futures, options, swaps). 1. Exchange-Traded Funds (ETF): An ETF is a type of investment fund that trades on stock exchanges. It represents ownership in a portfolio of underlying assets. ETFs are securities and are considered financial instruments. 2. Motor vehicles: A motor vehicle is a physical asset (a tangible good). It is not a financial instrument. While financing related to buying a vehicle (like a car loan) or insuring it involves financial instruments, the vehicle itself is not one. 3. Currency swap: A currency swap is a derivative contract where two parties exchange principal and interest payments in different currencies. It is a type of financial derivative and thus a financial instrument.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-exchange-traded-funds-etf-motor-vehicles\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:15:16+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consider the following : Exchange-Traded Funds (ETF) Motor vehicles","description":"The correct option is D. A financial instrument is a monetary contract between parties. They are broadly classified as cash instruments (like currency, deposits, loans, bonds, stocks) or derivative instruments (like futures, options, swaps). 1. Exchange-Traded Funds (ETF): An ETF is a type of investment fund that trades on stock exchanges. It represents ownership in a portfolio of underlying assets. ETFs are securities and are considered financial instruments. 2. Motor vehicles: A motor vehicle is a physical asset (a tangible good). It is not a financial instrument. While financing related to buying a vehicle (like a car loan) or insuring it involves financial instruments, the vehicle itself is not one. 3. Currency swap: A currency swap is a derivative contract where two parties exchange principal and interest payments in different currencies. It is a type of financial derivative and thus a financial instrument.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-exchange-traded-funds-etf-motor-vehicles\/","og_locale":"en_US","og_type":"article","og_title":"Consider the following : Exchange-Traded Funds (ETF) Motor vehicles","og_description":"The correct option is D. A financial instrument is a monetary contract between parties. They are broadly classified as cash instruments (like currency, deposits, loans, bonds, stocks) or derivative instruments (like futures, options, swaps). 1. Exchange-Traded Funds (ETF): An ETF is a type of investment fund that trades on stock exchanges. It represents ownership in a portfolio of underlying assets. ETFs are securities and are considered financial instruments. 2. Motor vehicles: A motor vehicle is a physical asset (a tangible good). It is not a financial instrument. While financing related to buying a vehicle (like a car loan) or insuring it involves financial instruments, the vehicle itself is not one. 3. Currency swap: A currency swap is a derivative contract where two parties exchange principal and interest payments in different currencies. 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