The correct answer is: Both A and B.
A spot market is a financial market in which assets are bought and sold for immediate delivery. A future market is a financial market in which assets are bought and sold for delivery at a specified future date.
Spot markets are typically used for assets that are easily traded, such as stocks, bonds, and currencies. Future markets are typically used for assets that are less easily traded, such as commodities and agricultural products.
Spot markets are more liquid than future markets, meaning that it is easier to buy and sell assets in spot markets. Future markets are more volatile than spot markets, meaning that prices in future markets can fluctuate more widely.
Here is a brief explanation of each option:
- A. Spot markets are financial markets in which assets are bought and sold for immediate delivery. Spot markets are typically used for assets that are easily traded, such as stocks, bonds, and currencies.
- B. Future markets are financial markets in which assets are bought and sold for delivery at a specified future date. Future markets are typically used for assets that are less easily traded, such as commodities and agricultural products.
- C. Both A and B. Spot markets and future markets are both financial markets in which assets are bought and sold. However, spot markets are used for assets that are bought and sold for immediate delivery, while future markets are used for assets that are bought and sold for delivery at a specified future date.
- D. Financial instruments are any contracts that have monetary value and can be bought and sold. Financial instruments include stocks, bonds, currencies, futures contracts, and options contracts.