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:

Cross-Sectional Design

A research methodology that analyzes data collected from a population, or a representative subset, at one specific point in time.

Habituation

The process by which an individual becomes accustomed to a stimulus or environment, leading to a decrease in response over time.

Newborns

Referring to a baby, especially during the first few weeks or months after birth.

First-Born

The status of being the earliest born child in a family, which has been studied for its potential impact on personality, intelligence, and other aspects of development.