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:

Higher Value Use

The employment of resources or assets in a manner that maximizes their value or return, often resulting in the most efficient and profitable outcome.

Operating Loss

A situation where a business's operating expenses exceed its revenues, indicating that it is not making a profit from its core operations.

Department Stores

Large retail establishments that offer a wide variety of goods and services across multiple departments, such as clothing, household goods, and appliances, under one roof.

Price Gouging

The act of charging excessively high prices for goods or services, usually during times of emergency or shortage.