Which One of the Following Statements Concerning Financial Futures Is

question 70

Multiple Choice

Which one of the following statements concerning financial futures is correct?

• A) Speculators in the currency markets are generally firms involved with international trading of goods and services.
• B) Portfolio managers wishing to provide downside protection to their portfolios are the primary speculators in the financial futures markets.
• C) Investors who simply play in the futures market with the hope of realizing capital gains are referred to as the hedgers.
• D) International trade often is accompanied by currency hedging via financial futures.

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Definitions:

Social Stratification

Refers to the way society is organized in layers, or strata.

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Unequal Size

A description of items, groups, or entities that are not the same in dimensions, capacity, or magnitude.

Assets

Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.