Financial Leverage, When Used in Association with a Futures Contract

question 35

Multiple Choice

Financial leverage, when used in association with a futures contract, ____ the positive returns and ____ losses.

• A)magnifies; reduces
• B)reduces; magnifies
• C)magnifies; magnifies
• D)reduces; reduces

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Definitions:

Specialists

Professionals or organisms with a focus on a particular area of study or skill, often resulting in increased efficiency or knowledge in that area.

Population Cycle

The fluctuation in population numbers over a period of time due to factors like food availability, predation, and disease.

Population Behaviours

The collective actions and patterns of behaviour exhibited by individuals within a population, influencing and being influenced by social and environmental factors.

Density-dependent

Factors whose effects on the size or growth of the population vary with the population density.