Many Financial Instruments Are Standardized Because

question 37

Multiple Choice

Many financial instruments are standardized because:

• A) it is believed that most parties to a contract do not read them anyway.
• B) complexity is costly, the more complex a contract, the more it costs to create.
• C) the standardization of contracts makes them harder to understand.
• D) it is required by the government.

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Definitions:

Customer Needs

The requirements and desires of purchasers that motivate them to buy products or services.

Innovation Efforts

The activities oriented towards creating new products, improving existing offerings, or developing novel processes and technologies.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.

Competition

Involves businesses contending in the same industry or market to attract customers, increase sales, and gain market share.