Q. Which of the following is true of foreign exchange markets?
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(A)
The futures market is mainly used by hedgers while the forward market is mainly used for speculating.
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(B)
The futures market and the forward market are mainly used for hedging.
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(C)
The futures market is mainly used by speculators while the forward market is mainly used for hedging.
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(D)
The futures market and the forward market are mainly used for speculating.
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Correct Answer: (C)
The futures market is mainly used by speculators while the forward market is mainly used for hedging.