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Which of the following is not a concern about derivative trading? A. It adds liquidity in...

Which of the following is not a concern about derivative trading?

A.

It adds liquidity in the financial system
B.

Derivative trading can cause large losses
C.

The value of derivatives is often overstated in companies' financial statements
D.

Derivatives are often interlinked causing widespread damage to the economy
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Answer #1

Option A is correct

It adds liquidity in the financial system.

Derivative leads to increased liquidity in the system and it is not a concern for the financial markets.

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