Which of the following scenarios best illustrates a financial market fulfilling its role of providing a forward market?
A multinational firm issuing corporate bonds on the debt market to fund a long-term infrastructure project.
A coffee shop chain securing a contract to buy coffee beans at a fixed price in nine months to hedge against price volatility.
A pension fund purchasing ordinary shares of a publicly listed utility company to receive dividends.
A commercial bank processing a direct debit payment from a household to a utility supplier.
21 exam-style questions on Edexcel A A Level Economics 4.4.1 Role of financial markets. Each one has a worked solution and a mark scheme showing where the marks go.