Q206
Speculators in the futures markets_____________.
A.
make the market more volatile
B.
contribute liquidity to the market
C.
engage mainly in short sales
AnswerD.
serve no real economic function
Answer: Option C
Solution
Answer: Option C
Solution:
Speculators are typically sophisticated risk-taking investors with expertise in the markets in which they are trading; they usually use highly leveraged investments, such as futures and options.