Which One of the Following Statements Concerning Financial Futures Is

question 70

Multiple Choice

Which one of the following statements concerning financial futures is correct?

• A) Speculators in the currency markets are generally firms involved with international trading of goods and services.
• B) Portfolio managers wishing to provide downside protection to their portfolios are the primary speculators in the financial futures markets.
• C) Investors who simply play in the futures market with the hope of realizing capital gains are referred to as the hedgers.
• D) International trade often is accompanied by currency hedging via financial futures.

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Definitions:

Budget Constraint

The limit on the consumption bundles that a consumer can afford based on their income and the prices of goods.

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The process of transferring music files from the internet to a computer or a music player, allowing users to listen to their preferred tracks.

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The process of watching movies over the internet without downloading them, often through subscription services.

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The economic principle that individuals seek to obtain the greatest utility or satisfaction from their consumption choices.