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:

Incompatibility

A situation where two or more substances or factors cannot coexist or work together without causing adverse effects.

Group Roles

The functions or parts played by individuals within a group context, which can vary from leadership and decision-making roles to support and maintenance functions.

Group Composition

The makeup or structure of a group, including the variety and characteristics of its members.

Focus

A central point of interest or activity.