What Are the Basic Functions of Financial Futures and Forward

question 76

Multiple Choice

What are the basic functions of financial futures and forward markets?

• A)reduction of risk associated with price changes that occurred in the past
• B)speculation in hopes of profiting from past price changes and mistakes that were made
• C)elimination of future price changes
• D)reduction of risk associated with future price changes and speculation in hopes of profiting from future price changes

Grasp the financial transactions involved in corporations, including nonmonetary exchanges and subscriptions.

Understand the accounting treatments for various corporate transactions.

Recognize the rights of shareholders and how these affect corporate governance.

Distinguish between compensatory and noncompensatory stock option plans.

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Definitions:

Agriculture Sectors

Different divisions within the agricultural industry, each focusing on various aspects of crop and livestock production, processing, and distribution.

Productivity

The efficiency of production, measured as the amount of output produced per unit of input used.

Little Capital

A term referring to businesses or investments that require a relatively small amount of money to start or maintain.

Infant Mortality Rate

A statistical measure representing the number of deaths of infants under one year old per 1,000 live births in a given year.