The development of financial futures markets for securities was prompted by:
A) Large gains being realized in commodity futures
B) Financial regulatory authorities
C) Volatile interest rates
D) GNMA mortgage-backed securities
E) None of the above

Question

Quizplus · Accepted Answer

The development of financial futures markets for securities was primarily prompted by volatile interest rates. This volatility made it necessary for financial institutions and investors to have mechanisms in place to hedge against unpredictable changes in interest rates, leading to the creation of financial futures markets.

The Development of Financial Futures Markets for Securities Was Prompted