What are the major functions of derivative markets in an, Financial Management

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What are the major functions of derivative markets in an

1. What are the major functions of derivative markets in an economy?

2. Compare and contrast options and forward contracts.

3. A bank must be ready to pay out all demand deposit liabilities on any given day.

True

False

4. In terms of liquidity risk measurement, the financing gap is defined as rate sensitive assets minus rate sensitive liabilities.

True

False

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