One Benefit of a Swap Compared to Futures and Options

question 76

Multiple Choice

One benefit of a swap compared to futures and options is that they

• A)promote liquidity.
• B)reduce the risk for both the buyer and seller.
• C)can be better tailored to meet the needs of market participants.
• D)can involve financial instruments and not just commodities.

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group compared to when they work alone.

Role Ambiguity

Occurs when an individual lacks clear direction or information about their responsibilities and expectations in their role.

Low Power

A term often used in social sciences to refer to individuals or groups that lack the authority, control, or influence to achieve their objectives relative to those with more power.

Psychological Intimacy

Emotional and psychological closeness to other team or group members.