Which of the Following Basic Functions Do Financial Futures Markets

question 50

Multiple Choice

Which of the following basic functions do financial futures markets fulfill?

• A)They reduce risk connected with future price changes.
• B)They reduce reverse the risks connected with prior price changes.
• C)They allow for speculation.
• D)Both a and c are correct.

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Definitions:

Personal Freedom

The rights and liberties that allow individuals to act freely without undue restraint or interference from government or other individuals.

Prohibition

The period from 1920 to 1933 in the United States when the manufacture, sale, and transportation of alcoholic beverages were banned by constitutional amendment.

Equal Rights Amendment

A proposed amendment to the U.S. Constitution aiming to guarantee equal legal rights for all American citizens regardless of sex, which has not been ratified.