Explanation:
Crude oil is incorrectly categorized as an investment asset. Investment assets are those assets whose sole purpose is to be used as investments such as equities, bonds, currencies, gold, silver, etc. whereas consumption assets are those assets that are traded for the purpose of consumption or processing. These assets include copper, corn, crude oil and livestock, etc.
Q.681 Harry McGuire is a recruitment specialist at a small size investment company that specializes in derivatives and fixed income assets. McGuire has a basic knowledge of investing and trading. He has prepared an informative presentation on the subject of derivatives, which is going to be used for the purpose of recruiting on university campuses. One of the slides from McGuire's presentation contained the following information:
"Futures and forward contracts can be written on many assets. These assets can be investment assets such as equities, bonds, gold, and crude oil, or consumption assets like corn, copper and livestock."
Which of the assets are incorrectly categorized?
A
Gold
B
Crude oil
C
Copper
D
Corn
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