The reasons for the use of financial instruments such as futures contracts,options and swaps include all of the following except:
A) to provide 'off-balance-sheet' financing opportunities
B) to reduce the amount of outstanding accounts receivable
C) to assist in the management of interest rate and foreign currency exchange risks
D) to enable the raising of funds by businesses

Question

Quizplus · Accepted Answer

Financial instruments such as futures contracts, options, and swaps are primarily used to manage various financial risks, including interest rate and foreign currency exchange risks, and to raise funds. However, they are not used to reduce the amount of outstanding accounts receivable.

The Reasons for the Use of Financial Instruments Such as Futures