Which of the Following Is True

question 131

Multiple Choice

Which of the following is true?

• A) Most forward contracts between firms and banks are for speculative purposes.
• B) A security deposit is not required for futures contracts.
• C) The forward contracts offered by banks have maturities for only four possible dates in the future.
• D) None of these are correct.

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Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.