Which of the Following Is Not Correct Concerning the Financial

question 30

Multiple Choice

Which of the following is not correct concerning the financial futures markets?

• A) One of the prominent exchanges for financial futures is the Chicago Board of Trade.
• B) The contracts were first traded in 1972.
• C) A major use is protection from interest rate risk.
• D) Trading in commodity futures significantly exceeds trading in financial futures.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, representing the short-term liquidity.

Long-Term Debt

Financial obligations of a company that are due more than one year in the future.

Current Assets

Assets owned by a company that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to determine investment worth.