Although derivatives can be used as speculative instruments, businesses most often use them to
A) attract customers.
B) appease stockholders.
C) offset debt.
D) hedge risks.
E) enhance their balance sheets.

Question

Quizplus · Accepted Answer

Derivatives are primarily used by businesses to hedge risks, such as fluctuations in currency exchange rates, interest rates, and commodity prices, to stabilize their operations and financial performance.

Although Derivatives Can Be Used as Speculative Instruments, Businesses Most