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Which of the Following Statements About Derivatives Is False

Question 65

Multiple Choice

Which of the following statements about derivatives is false?


A) Derivatives are financial contracts the values of which are derived from the values of other underlying assets.
B) Examples of derivatives include futures, options, and combinations thereof.
C) Bank participation in derivative markets is severely limited because of the inherent riskiness of the instruments.
D) Derivatives can be used to hedge or to speculate.

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