Which of the Following Is True for Futures, but Not

question 134

Multiple Choice

Which of the following is true for futures, but not for forwards?

• A) actual delivery
• B) no transactions costs
• C) self-regulating market
• D) None of these are correct.

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Definitions:

Disposable Income

Disposable income refers to the amount of money individuals or households have available to spend or save after income taxes are deducted.

Marginal Propensity

The ratio of change in an economic variable (e.g., consumption, saving) to a change in another economic variable (e.g., income).

Disposable Income

Post-tax income that households can allocate towards savings and expenses.

Consumption Spending

The total amount of money that households spend on goods and services within a certain period.