The Market for Derivatives Is Also a Source of Financing

question 33

True/False

The market for derivatives is also a source of financing for corporations.

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Definitions:

Island Chain

A series of islands formed close to each other, often as a result of volcanic activity.

Mid-Ocean Ridge

An underwater mountain range formed by plate tectonics, where new oceanic crust is created.

Transform Fault

A strike-slip fault that accommodates the horizontal movement of one tectonic plate past another.

Mid-Atlantic Ridge

An underwater ridge located in the Atlantic Ocean, forming a divergent tectonic plate boundary that separates the Eurasian and North American plates in the north and the African and South American plates in the south.