Which of the Following Is NOT a Benefit of Derivatives

question 83

Multiple Choice

Which of the following is NOT a benefit of derivatives?

• A) risk sharing
• B) guaranteed minimum profit
• C) liquidity
• D) information services

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Definitions:

Total Expenditures

The sum of all spending incurred by individuals, firms, or the government within a specific period.

Isocost Line

A line representing all combinations of inputs that result in the same total cost for a firm.

Price Of Capital

The cost of using capital goods for production, often represented by interest rates or rental prices of equipment and machinery.

Slope

A measure of the steepness or incline of a line, indicating the rate of change between two variables on a graph.