The Purpose of Derivatives Is To

question 83

Multiple Choice

The purpose of derivatives is to:

• A)Increase the risk so the return is larger.
• B)Eliminate risk for both parties in the transaction.
• C)Postpone the risk for both parties in the transaction.
• D)Transfer the risk from one person to another.

---

Definitions:

Deep

A descriptive term used in various contexts to indicate a considerable distance from the surface or edge, often related to the dimension of a feature.

Depth

The measurement from the top surface to the bottom in an object, often used to specify the extent of features such as holes or cuts.

Third Dimension

The third dimension adds depth to two-dimensional representations, enabling the portrayal of length, width, and height or depth, thus offering a more comprehensive visualization.

Separate Drawing

An individual drawing sheet that details a single part or component, used for clarity or to specify complex details, separate from the main assembly drawing.