The Financial Futures Market Has Evolved Over Recent Time Because

question 5

Multiple Choice

The financial futures market has evolved over recent time because of

• A)Volatility and risk in the foreign exchange markets
• B)Volatility of interest rates
• C)Appeal to speculators due to low margin requirements
• D)All of the above

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Definitions:

Real GDP

The production of goods and services valued at constant prices.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and reliability.

Indexed

A term referring to the adjustment of income, benefits, or prices in accordance with changes in a price index, typically to preserve purchasing power.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.