The Reasons for the Use of Financial Instruments Such as Futures

question 18

Multiple Choice

The reasons for the use of financial instruments such as futures contracts,options and swaps include all of the following except:

• A) to provide 'off-balance-sheet' financing opportunities
• B) to reduce the amount of outstanding accounts receivable
• C) to assist in the management of interest rate and foreign currency exchange risks
• D) to enable the raising of funds by businesses

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