3. Financial instruments Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their. issuers, maturity, risk, and other factors. Identify the financial instruments based on the following descriptions. Which of the following instruments are traded in the capital markets? check ant that apply. Common stocks Long-term bank toans Corporate bends Treasury biils Which of the following instruments are traded in the capital markets? Check ali that appiy. Common stocks Long-term bank loans Corporate bonds Treasury bils Commercial paper A financial instrument whose value is derived from the value of an undertying asset is called a