The Key Role of Futures Contracts Is That, in a Well-Functioning

question 18

True/False

The key role of futures contracts is that, in a well-functioning futures market, these contracts provide a more efficient means for investors to alter their risk exposure to an asset.

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Definitions:

Deterrence Theory

A concept in criminology that argues the certainty, severity, and swiftness of punishment can deter individuals from committing crimes.

Pre-Twentieth Century

Referring to the period in history before the year 1900.

Deterrence

The use of punishment or the threat of punishment to discourage individuals from engaging in criminal or undesirable behavior.

Punishing

The act of imposing a penalty or sanction on someone for their wrongdoing or offense.