Standardization in Currency Futures Contracts Increases Liquidity and Marketability, but Reduces

question 8

True/False

Standardization in currency futures contracts increases liquidity and marketability, but reduces their flexibility relative to forward contracts.

---

Definitions:

Theoretical Concepts

Ideas or principles formulated to explain phenomena, forming the foundation of theories within academic fields.

Internal Validity

The extent to which a study accurately demonstrates a cause-and-effect relationship.

Experiments

Scientific procedures undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Effect Size

A quantitative measure of the magnitude of a phenomenon or the strength of the relationship between variables.