_________ Take Positions in Financial Futures to Reduce Their Exposure

question 42

Multiple Choice

  _________ take positions in financial futures to reduce their exposure to future movements in interest rates or stock prices; ________ commonly take the opposite position and thus serve as counterparties on many transactions.

• A)Speculators; hedgers
• B)Hedgers; speculators
• C)Arbitrageurs; speculators
• D)Hedgers; arbitrageurs

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Definitions:

Skill Variety

The degree to which a job or role requires a person to use a wide range of different skills and abilities.

Job Characteristics Model

A framework that proposes that certain job characteristics (skill variety, task identity, task significance, autonomy, and feedback) influence job outcomes through their impact on three critical psychological states.

Empowerment

Enabling individuals or groups to have the confidence and resources to make decisions and implement changes in their work or community.

Expectancy Model

A psychological theory suggesting that people are motivated to act in certain ways based on their expectations of the outcome and the value they place on that outcome.