Which of the Following Statements Is False

question 32

Multiple Choice

Which of the following statements is false?

• A) Firms generally do not possess better information than outside investors regarding the risk of future commodity price changes, nor can they influence that risk through their actions.
• B) Cash flows in a futures contract are exchanged on a monthly basis, rather than waiting until the end of the contract, through a procedure called marking to market.
• C) The firm may speculate by entering into contracts that do not offset its actual risks.
• D) When a firm authorizes managers to trade contracts to hedge, it opens the door to the possibility of speculation.

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Definitions:

Health Problems

Issues or conditions that negatively affect an individual's physical or mental well-being.

Late Adulthood

A stage in human development that typically begins at age 65 and lasts until death, characterized by retirement, physical changes, and adjustments to social roles.

Loss Of Control

A situation where an individual feels they no longer have power or command over certain behaviors or emotions, often linked to psychological conditions.

Adaptation-Level Phenomenon

A psychological principle suggesting that individuals adapt to new stimuli or changes over time, altering their standard of normality.