What is a financial instrument?

A financial instrument is defined as an asset that can be traded, which encompasses a wide range of investment products such as stocks, bonds, options, and derivatives. These instruments can be used for various purposes, including raising capital or hedging against risk. They have quantifiable value and can be bought or sold in the financial markets, making them essential for investment and portfolio management.

The other options refer to different aspects of banking or finance but do not accurately capture the definition of a financial instrument. Currency, while it can be seen as a financial tool for transactions, does not encompass the broad category of tradable assets. Banking regulations refer to rules governing the financial industry, and services offered by banks relate to the delivery of financial products or assistance to customers but do not define financial instruments themselves.