Which of the Following Is True

question 124

Multiple Choice

Which of the following is true?

• A) The futures market is primarily used by speculators while the forward market is primarily used for hedging.
• B) The futures market is primarily used for hedging while the forward market is primarily used for speculating.
• C) The futures market and the forward market are primarily used for speculating.
• D) The futures market and the forward market are primarily used for hedging.

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Definitions:

Safeguarded

refers to measures or actions taken to protect something from harm, loss, or unauthorized access.

Bank Service Charge

Fees charged by banks for account services provided, including monthly maintenance, transactions exceeding a certain limit, or ATM usage outside the network.

NSF Cheque

A cheque that cannot be processed because the account it is drawn on does not have sufficient funds, standing for "Non-Sufficient Funds."

Outstanding Cheques

Checks that have been written and recorded in the issuing company's ledger but have not yet been cashed or cleared by the bank.