Which of the Following Statements Is FALSE

question 60

Multiple Choice

Which of the following statements is FALSE?

• A) Derivatives help shift risk from risk-adverse investors to risk-takers.
• B) Derivatives assist in forming cash prices.
• C) Derivatives provide additional information to the market.
• D) In many cases, the investment in derivatives (both commissions and required investment) is more than in the cash market.
• E) Some derivatives trade hypothetical underlying assets.

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Definitions:

Inborn Tendencies

Natural predispositions or instincts that individuals are born with, influencing their behaviors and reactions.

Uncertainty Avoidance

A societal characteristic identifying how much ambiguity and unpredictability is accepted by a culture.

Job Mobility

The ability or ease with which an individual can move to different job roles or employment opportunities.

Personal Achievement

Refers to the accomplishment of personal goals and objectives, often leading to a sense of satisfaction and fulfillment.