Which of the Following Statements About the Presence of Speculators

question 88

Multiple Choice

Which of the following statements about the presence of speculators in futures markets is correct?

• A)Their main objective is to reduce their exposure to risk.
• B)They aid hedgers by increasing the liquidity in futures markets.
• C)They make it difficult for hedgers to find someone to take the opposite side of their positions.
• D)Once a futures market participant is known to be a speculator he or she is no longer allowed to participate in the market.

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Definitions:

Employee Layoffs

happen when employees are let go from their jobs due to cost-cutting measures, restructuring, or economic downturns.

Codetermination Rights

Legal rights allowing workers and their representatives to participate in management and decision-making processes within a company.

Works Council

Employee representation bodies within a workplace that consult with management on issues affecting workers, common in many European countries.

Labor Relations

The study and practice of managing relationships between employers and their workforce, often involving labor unions, collective bargaining, and labor laws.