The futures and options markets tend to promote greater efficiency in the use of scarce financial resources.

Name: The futures and options markets tend to promote greater efficiency in the use of scarce financial resources.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Futures and options markets allow for the hedging of risks and the discovery of prices, which can lead to more efficient allocation of financial resources by enabling investors to manage risk more effectively and allocate capital to its most productive uses.

The Futures and Options Markets Tend to Promote Greater Efficiency