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Financial Instrument

Categories: Banking, Investing

A financial instrument is a contract that represents some monetary value. A check represents the most common form, though there are other more exotic examples: drafts or bills of exchange.

Securities fall into the category as well, things like stocks and bonds, or futures and options contracts. They're all instruments of representation of monetary value...or something like that.

Find other enlightening terms in Shmoop Finance Genius Bar(f)