Which of the following statements is most correct?
A) When a risk is difficult to predict, financial instruments are created to transfer these risks.
B) Financial instruments are created to transfer risks that are relatively easy to predict.
C) Financial instruments require certainty of an event to be able to transfer risk.
D) Financial instruments eliminate the risk from uncertainty, they do not transfer it.
Correct Answer:
Verified
Q20: Mary purchases a U.S. Treasury bond; the
Q21: A futures contract is an example of:
A)
Q22: Many financial instruments are standardized because:
A) it
Q23: More detailed financial instruments tend to be:
A)
Q24: The primary use of derivative contracts is:
A)
Q26: A derivative instrument:
A) comes into existence after
Q27: The owner of a small business applies
Q28: Standardization of financial instruments has occurred as
Q29: A share of Microsoft stock would best
Q30: A counterparty to a financial instrument is
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