Which of the Following Statements About the Presence of Speculators

question 88

Multiple Choice

Which of the following statements about the presence of speculators in futures markets is correct?

• A)Their main objective is to reduce their exposure to risk.
• B)They aid hedgers by increasing the liquidity in futures markets.
• C)They make it difficult for hedgers to find someone to take the opposite side of their positions.
• D)Once a futures market participant is known to be a speculator he or she is no longer allowed to participate in the market.

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Definitions:

Distribution System

The network used to distribute goods or power from a source to end users.

Decision

The process of choosing among different options or actions based on certain criteria or considerations to achieve a desired outcome.

Producing Component

A part or element in a manufacturing process that is being made into a final product.