The Advantage of Forward Contracts Over Future Contracts Is That

question 73

Multiple Choice

The advantage of forward contracts over future contracts is that they

• A)are standardized.
• B)have lower default risk.
• C)are more liquid.
• D)are more flexible

Develop skills in financial calculation and analysis.

Understand the tools and components of fiscal policy.

Comprehend the difference and relationship between fiscal policy, government spending, and taxation.

Identify the effects of fiscal policy on aggregate demand and supply.

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Definitions:

Four Freedoms

A set of ideals proclaimed by President Franklin D. Roosevelt including freedom of speech, freedom of worship, freedom from want, and freedom from fear.

"Good Neighbor" Policy

A foreign policy approach adopted by the United States, first mentioned by President Herbert Hoover but more closely associated with President Franklin D. Roosevelt, aimed at strengthening diplomatic and economic relations with Latin American countries in the 1930s, emphasizing cooperation and non-intervention.

"Gentleman's Agreement"

An informal and unwritten agreement upheld by the honor of the parties involved, rather than by legal obligation.

Neutrality Acts

A series of laws passed by the United States in the 1930s aimed at preventing American involvement in future foreign conflicts by limiting trade and travel with nations at war.