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:

Merit

The quality of being particularly good or worthy, especially so as to deserve praise or reward.

Political Beliefs

Political beliefs are individual or collective ideas regarding how a country should be governed, including opinions on public policies, governmental systems, and political ideologies.

Career Civil Servant

A government employee who works in public sector organizations and is not appointed based on political affiliation but on professional merit.

Political Appointee

An individual who is appointed to a governmental position by a political leader rather than through a merit-based or competitive process.