Which of the following are the basic elements of the financial system? A. Currency B. Exchange rate C. Credit D. Interest rate E. Financial instruments

The basic elements of the financial system: a, currency; B. exchange rate; C. credit; D. interest rate; E. financial instruments.

The ability of financial assets to be converted into money without losing their value. Except currency, all kinds of financial assets have different degrees of incomplete liquidity. If other financial assets want to be converted into currency before maturity, they should either be given a certain discount or spend a certain transaction fee.

Generally speaking, if financial instruments have the following two characteristics, they may have high liquidity, and debtors who issue financial assets have a high reputation and can fulfill their obligations in full and on time in past debt repayment. The term of debt is very short. This is not affected by the market interest rate, and it is unlikely that there will be losses when converted into cash.

Extended data:

The characteristic that financial instruments can bring benefits to holders regularly or irregularly. The profitability of financial instruments is measured by the rate of return, and its specific indicators include nominal rate of return, real rate of return and average rate of return.

Because of the off-balance-sheet risks of financial instruments, both international accounting standards and American GAAP require enterprises operating financial instruments to disclose the information of financial instruments in the text and notes of financial statements. The prescribed accounting treatment and accounting treatment of derivative financial instruments are mostly included in the standards for bonds payable, investment and shareholders' equity.