Which of the following is true about the use of derivatives?
A)Derivatives usually appear explicitly in the ﬁnancial statements.
B)Academic surveys account for much of our knowledge of corporate derivatives use.
C)Smaller ﬁrms are more likely to use derivatives than large ﬁrms.
D)Frequently, ﬁrms use derivatives where ﬁnancial distress costs are low.
E)None of the above are true.

Question

Quizplus · Accepted Answer

Academic surveys have been a significant source of information on how corporations use derivatives, as these financial instruments are often not detailed explicitly in financial statements.

Which of the Following Is True About the Use of Derivatives