Speculators in Derivatives Markets

question 73

Multiple Choice

Speculators in derivatives markets

• A) reduce the efficiency of these markets.
• B) are acting contrary to U.S. securities laws.
• C) accept risk transferred to them by hedgers.
• D) reduce the liquidity of these markets.

Analyze the effects of expected and actual inflation on the economy.

Understand the concept of monetary neutrality and its implications.

Examine the interplay between monetary policy, inflation expectations, and unemployment.

Understand the implications of changes in fiscal policies on unemployment and inflation.

---

Definitions:

Apprentice

A person who is learning a trade from a skilled employer, having agreed to work for a fixed period at low wages.

Strong

The quality or state of being physically powerful or having a high degree of muscle strength.

Capable

Having the ability, power, or qualifications to do something effectively or achieve a specific outcome.

Brain Changes

Alterations in the brain's structure, function, or chemical composition due to aging, experience, or injury.