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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Definitions:

Swallowing

The complex process involving the throat and esophagus by which food or liquid moves from the mouth to the stomach.

Sucking

A natural reflex for babies allowing them to feed by drawing milk from the breast or bottle.

Psychological Condition

A state of one's mental or emotional state that affects their behavior, perception, and well-being.

Low Birth Weight

Refers to newborns who weigh less than 2,500 grams (5.5 pounds) at birth, potentially leading to health issues.