Those Who Invest in Derivative Instruments with the Purpose of Increasing

question 33

Multiple Choice

Those who invest in derivative instruments with the purpose of increasing rather than decreasing risk are known as:

• A)Option traders.
• B)Futures traders.
• C)Hedgers.
• D)Speculators.

Understand the distinction and application of System 1 and System 2 in decision-making processes.

Recognize various cognitive biases and their impact on economic behavior.

Comprehend the role of advertising and media in economic decisions.

Identify common errors in personal forecasting and planning due to cognitive biases.

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Definitions:

Megaspore

The larger type of spore in some plants that develops into a female gametophyte.

Pollinated

The transfer of pollen from the male parts of a flower to the female parts of the same or another flower, leading to fertilization and the production of seeds.

Petals

The often colorful parts of a flower, usually located between the sepals and the reproductive organs, involved in attracting pollinators.

Megasporocyte

A cell within the ovules of plants that undergoes meiosis to produce four megaspores, leading to the development of female gametophytes.