Although Derivatives Can Be Used as Speculative Instruments, Businesses Most

question 55

Multiple Choice

Although derivatives can be used as speculative instruments, businesses most often use them to

• A) attract customers.
• B) appease stockholders.
• C) offset debt.
• D) hedge risks.
• E) enhance their balance sheets.

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Definitions:

Obesity

Condition of being significantly overweight, defined by the Centers for Disease Control as a body mass index (BMI) of 30 or over, where BMI is calculated as weight in pounds multiplied by 703, then divided by the square of height in inches.

Anorexia Nervosa

A psychiatric disorder characterized by an extreme fear of weight gain and a distorted body image, leading to self-starvation.

Elaborate Rituals

Complex sequences of behaviors or practices performed according to a prescribed order, often seen in religious, cultural, or psychological contexts.

Losing Weight

The act of reducing body weight through means such as diet, exercise, or surgery, often aimed at improving health or appearance.