In the Futures Markets Speculators Are Mainly Interested In

question 11

Multiple Choice

In the futures markets speculators are mainly interested in:

• A) attempting to make a profit by betting on expected price changes.
• B) reducing their exposure to risk of price changes.
• C) increasing market liquidity.
• D) reducing the spread between the bid and ask prices on bonds.

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Definitions:

Trade Restrictions

Measures such as tariffs, quotas, and embargoes imposed by governments to control and limit the volume or value of goods and services that are traded across borders.

Innovation

The process of creating new methods, ideas, or products, or the introduction of something new that adds value.

Declining Industries Argument

The notion that certain sectors of the economy may experience a reduction in demand and productivity, leading to a downturn in those industries.

Foreign Competition

The competition that domestic companies face from companies located in other countries.