The principal reason for financial futures markets is which of the following?
A)to increase government intervention
B)to reduce the risks associated with increased price volatility
C)to lower currency prices
D)to increase risks so higher returns can be earned

Question

Quizplus · Accepted Answer

The principal reason for financial futures markets is to reduce the risks associated with increased price volatility. These markets provide a way for traders and investors to hedge against price fluctuations in various financial instruments. This can help to reduce overall risk in the market and provide stability for both traders and investors.

The Principal Reason for Financial Futures Markets Is Which of the Following