InterviewSolution
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Why Do We Need Futures Markets? |
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Answer» The price you pay for GOODS and services DEPENDS to a great extent on how SUCCESSFUL businesses are in managing risk. By using the futures market effectively, businesses can minimize their risk, which, in turn, lowers their cost of doing business. This savings is passed onto you, the consumer, in the form of lower prices for food and other COMMODITIES, or a better return on a pension or INVESTMENT fund. The price you pay for goods and services depends to a great extent on how successful businesses are in managing risk. By using the futures market effectively, businesses can minimize their risk, which, in turn, lowers their cost of doing business. This savings is passed onto you, the consumer, in the form of lower prices for food and other commodities, or a better return on a pension or investment fund. |
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