If There Is an Excess of Market Participants Who Want

question 94

Multiple Choice

If there is an excess of market participants who want to buy the futures as a hedge,then:

• A) speculators will come into the market to sell the futures.
• B) speculators will see a potential profit from also buying the futures.
• C) speculators will steer clear of the futures market.
• D) the market may have to close down until there is a balance of supply and demand.

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Definitions:

Profits

The financial gain realized when the revenues generated from business operations exceed the expenses, taxes, and costs incurred.

GDP

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Sales Opportunity

A situation or instance where there is a potential for a business to sell its products or services, often identified through marketing and analysis.

Inflation-Adjusted

Describes values that have been adjusted for inflation, often to compare the real purchasing power of money or to reflect the real value of earnings or assets over time.