Economics B A-Level
Financial derivatives
What Financial derivatives means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Financial derivatives
Check what you remember
Read the wording for your board, then hide it and explain Financial derivatives in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The forward contract itself, as distinct from the underlying asset such as the physical commodity or currency.
Topics that use Financial derivatives
- The role of the financial sector (Pearson Edexcel A-Level)
Related terms
- Capital allocation
- Credit rating agencies
- Financial intermediation
- International trade
- Liquidity
- Medium of exchange
- Payment systems
- Saving and borrowing
Using Financial derivatives in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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