Which of the Following Is NOT Correct with Respect to Derivative

question 60

Multiple Choice

Which of the following is NOT correct with respect to derivative securities?

• A)They are among the riskiest of securities in the financial securities markets.
• B)They can be used for hedging purposes.
• C)Examples of derivatives include futures, options and swaps.
• D)All of these are correct statements about derivatives.

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Definitions:

Constructive Processing Effect

The psychological phenomenon where memory retrieval involves active reconstruction using both stored information and new input, rather than merely playing back exact copies of stored data.

Constructive Processing

Refers to the way individuals build up memories based on the integration of new information with existing knowledge.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, rather than merely repeating the word to oneself.

Long-Term Memory

A type of memory capable of storing an unlimited amount of information for periods ranging from a few days to a lifetime.