Which one of the following is true about the use of derivatives?
A)Derivatives usually appear explicitly in the financial statements.
B)Academic surveys account for much of our knowledge of corporate derivatives use.
C)Small firms are more likely to use derivatives than large firms.
D)The most frequently used derivatives are commodity and equity futures.
E)Derivatives are primarily used by firms that have easy access to capital markets.

Question

Quizplus · Accepted Answer

Academic surveys are an important source of information on corporate derivatives use. Derivatives do not usually appear explicitly in financial statements, and there is no evidence to suggest that small firms are more likely to use derivatives than large firms. The most frequently used derivatives vary depending on the industry and specific company needs. Derivatives are used by firms of all sizes, not just those with easy access to capital markets.

Which One of the Following Is True About the Use