Although Derivatives Can Be Used as Speculative Instruments, Businesses Most

question 55

Multiple Choice

Although derivatives can be used as speculative instruments, businesses most often use them to

• A) attract customers.
• B) appease stockholders.
• C) offset debt.
• D) hedge risks.
• E) enhance their balance sheets.

---

Definitions:

Counterproposal

A proposal offered in response to a previous proposal, typically aiming to negotiate or compromise on differing terms.

Counterproposal

A proposal offered in response to one previously made, often as a form of negotiation or compromise.

Engineering Graduate

An individual who has received a degree in engineering from a college or university.

Constructive Criticism

Feedback intended to provide helpful and specific suggestions for improvement in a positive manner.