Which One of the Following Statements Concerning Financial Futures Is

question 70

Multiple Choice

Which one of the following statements concerning financial futures is correct?

• A) Speculators in the currency markets are generally firms involved with international trading of goods and services.
• B) Portfolio managers wishing to provide downside protection to their portfolios are the primary speculators in the financial futures markets.
• C) Investors who simply play in the futures market with the hope of realizing capital gains are referred to as the hedgers.
• D) International trade often is accompanied by currency hedging via financial futures.

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Definitions:

Cry

The act of shedding tears as an emotional response or due to irritation of the eyes.

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The ability to use symbols, language, or objects to represent something abstract, such as an idea or concept.

Piaget

A Swiss psychologist known for his pioneering work on the cognitive development of children.

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The process by which individuals acquire the ability to perceive, comprehend, and produce language during their lifetime.