Which of the Following Is True

question 61

Multiple Choice

Which of the following is true?

• A) The futures market is primarily used by speculators while the forward market is primarily used for hedging.
• B) The futures market is primarily used for hedging while the forward market is primarily used for speculating.
• C) The futures market and the forward market are primarily used for speculating.
• D) The futures market and the forward market are primarily used for hedging.

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Definitions:

Effectiveness

Effectiveness refers to the degree to which a process, action, or intervention achieves its intended outcome or goals under normal or real-world conditions.

Representative Sampling

A method in statistics where a small subset of a population is chosen to accurately reflect the characteristics of the whole population.

Self-Report Bias

Refers to the bias that occurs when participants in research projects over or under-report behaviors or attitudes due to misremembering, misunderstanding, or wanting to present themselves in a favorable light.

Experimenter Bias

A process where the scientists performing the research influence the results, consciously or unconsciously, in order to portray a certain outcome.