Which One of the Following Statements Is True

question 47

Multiple Choice

Which one of the following statements is true?

• A) Derivative securities are used to minimize or eliminate an investor's or a firm's exposure to various types of risk that they may be exposed to.
• B) Derivatives are financial securities which are based upon or derived from existing securities.
• C) Risk to an investor or a firm can be caused by interest rate changes or foreign exchange rate changes, commodity prices or stock prices.
• D) all of the above

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Definitions:

General Lineage Species Concept

A conceptual approach to defining species based on the idea that species are segments of population lineages that show evidence of a distinct evolutionary trajectory.

Foreign Operation

Foreign operation pertains to business activities conducted in a country different from the company's home country, involving adapting strategies to international markets.

Domestic Markets

The market within a country's borders, representing the trading of goods and services within the same nation.

Exporting Products

The act of selling goods and services produced in one country to other countries.