Which of the Following Is True About the Use of Derivatives

question 13

Multiple Choice

Which of the following is true about the use of derivatives?

• A)Derivatives usually appear explicitly in the financial statements.
• B)Academic surveys account for much of our knowledge of corporate derivatives use.
• C)Smaller firms are more likely to use derivatives than large firms.
• D)The most frequently used derivatives are commodity and equity.
• E)None of the above are true.

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Definitions:

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The systematic study of the structure and behavior of the physical and natural world through observation and experiment.

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