Commodity and Derivative Markets

question 22

Multiple Choice

Commodity and derivative markets:

• A) are additional sources of financing for corporate projects.
• B) enable the financial manager to adjust a firm's exposure to various business risks.
• C) are always over-the-counter markets.
• D) deal only in foreign currencies.

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Definitions:

Reverse Discrimination

Situations where affirmative action or similar measures result in perceived or actual discrimination against a dominant or majority group.

Preferential Treatment

The act of giving unfair advantage or benefits to certain employees over others without justifiable reasons.

Four-Fifths Rule

The four-fifths rule suggests that disparate impact exists if a selection criterion (e.g., a test score) results in a selection rate for a protected class that is less than four-fifths (80 percent) of that for the majority group.

Protected Class

A protected class consists of all individuals who share one or more common characteristics as indicated by that law.