Financial instruments have recently been developed and used for what purposes?
A) increasing the volatility of primary financial instruments
B) making speculative gains
C) reducing risks
D) making speculative gains and reducing risks

Question

Quizplus · Accepted Answer

Financial instruments have been developed to serve multiple purposes, including reducing risks for investors and making speculative gains. These instruments include derivatives, futures, options, and swaps, among others. While they can be used for speculative purposes, they can also be effective tools for managing risk in investment portfolios. Therefore, the best choice is D, making speculative gains and reducing risks.

Financial Instruments Have Recently Been Developed and Used for What