The Primary Purpose of Financial Futures Is To

question 93

Multiple Choice

The primary purpose of financial futures is to:

• A) benefit from increases in interest rates.
• B) protect against swings in interest rates or prices of financial assets.
• C) translate one currency into another.
• D) guarantee the repayment of loan principal.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.

Partial Conditioner

An agent or factor that has a conditional effect, contributing to an outcome only in certain contexts or situations.

Unconditioned Responses

Automatic, natural reactions to stimuli that occur without prior learning or conditioning, such as reflex actions.