The Major Function of Futures Markets Is to Transfer Price

question 32

Multiple Choice

The major function of futures markets is to transfer price risk from ________.

• A) aggressive investors to speculators.
• B) hedgers to conservative investors.
• C) speculators to hedgers.
• D) hedgers to speculators.

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Definitions:

Sample

A segment of the broader population selected for analysis, assessment, or interrogation to obtain information that reflects the characteristics of the entire population.

Nominal

Relating to data that can be categorized but not ranked; involves naming or labeling categories.

Interval

A range or distance between two points or values, often referring to time or space.

Level Of Measurement

The classification of a variable depending on how its values can be measured or categorized, such as nominal, ordinal, interval, or ratio.