Which of the Following Contributes to the Liquidity of Financial

question 3

Multiple Choice

Which of the following contributes to the liquidity of financial futures and their price discovery function?

• A)Their use by speculators.
• B)The use of standardised contracts.
• C)The low cost of trading.
• D)The limited number of settlement dates.
• E)All of these.

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Definitions:

Energy Reserves

Stored substances in the body, such as glycogen and fat, that can be utilized as fuel for biological processes when needed.

General Adaptation Syndrome

A sequence of three reactions (alarm, resistance, exhaustion) proposed by Hans Selye, which the body experiences during extended periods of stress.

Alarm Reaction

Alarm reaction is the initial stage in the body's response to stress, triggering a heightened state of alert and mobilization of the body's resources.

Panic

A sudden, overwhelming feeling of fear and anxiety that can result in wildly unthinking behavior.