Derivatives Dealers Primarily Conduct Derivatives Transactions for Which of the Following

question 9

Multiple Choice

Derivatives dealers primarily conduct derivatives transactions for which of the following reasons?

• A)to enhance the returns on their other investment transactions
• B)to profit off of their ability to execute trades at the right time
• C)to profit off of their market making services
• D)to provide services to enhance the overall attractiveness of their product line
• E) none of the above

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Definitions:

Standard of Value

A base for comparison that allows the determination of the economic value of goods and services.

Short Run

A period in economics during which some factors of production are fixed, limiting the immediate ability of businesses to expand or change production levels.

Long Run

Refers to a period in which all factors of production and costs are variable, allowing for the full adjustment to changes.

Monetary Growth

The increase in the quantity of money in an economy over time, which can influence inflation and economic activity.