The Primary Purpose of Financial Futures Is To

question 93

Multiple Choice

The primary purpose of financial futures is to:

• A) benefit from increases in interest rates.
• B) protect against swings in interest rates or prices of financial assets.
• C) translate one currency into another.
• D) guarantee the repayment of loan principal.

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Definitions:

Estate In Fee Simple

The greatest form of property ownership, where the owner has unrestricted rights to the property and can dispose of it as they wish.

Life Estate

An estate in land in which the right to possession is based upon a person’s lifetime.

Life Estate

A legal right to use and derive benefit from property for the duration of one's life, after which control reverts to another party.

Fee Simple

A type of freehold ownership where the owner has the greatest possible rights over the land forever.