One Disadvantage of Exchange-Traded Currency Futures Contracts Is That the Buyer

question 44

True/False

One disadvantage of exchange-traded currency futures contracts is that the buyer doesn't know the identity of the seller of the contract.

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Definitions:

Direct Method

A method of allocating service department costs directly to producing departments without considering interactions among service departments.

Operating Activities

Activities that constitute the primary or main activities of an organization, including sales, supply, and production functions, often reflected in the cash flow statement.

Indirect Method

A technique used in comprehensive cash flow statements, it adjusts net income for non-cash transactions and changes in working capital to calculate net cash from operating activities.

Cash Flow Statement

A financial report that provides a summary of the cash inflows and outflows for a business over a specific period.