Financial derivatives and short-term securities

The value of financial derivatives is derived from the performance of underlying entities, e.g. shares, bonds, currencies or raw materials. Derivative transactions include a variety of financial contracts with respect to future purchase and selling prices of the underlying entities or exchange of cash flows. Financial derivatives include options, swaps, futures and forward rate agreements.

Short-term securities mature in one year or less and are marketable, e.g. treasury bills issued by the Dutch government or foreign governments, savings bonds payable to bearer and marketable certificates of deposit issued by resident and non-resident banks.

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