Price Discovery Performed by the Futures Market Does NOT

question 23

Multiple Choice

Price discovery performed by the futures market does NOT:

• A)occur unless markets are liquid and efficient
• B)assist FRA and interest-rate swap dealers
• C)identify short-term forward interest rates
• D)require large trading volumes
• E)benefit from the trading activities of speculators.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system responsible for the body's 'fight or flight' response, regulating heart rate, blood pressure, and other functions.

Parasympathetic Nervous System

A branch of the autonomic nervous system responsible for conserving energy and restoring the body to a state of calm.

Glucocorticoids

A class of steroid hormones that play a role in glucose metabolism, inflammation suppression, and immune system regulation.

Gluconeogenesis

The metabolic process that generates glucose from non-carbohydrate sources, critical for maintaining blood sugar levels.