Which of the Following Is True of a Futures Contract

question 61

Multiple Choice

Which of the following is true of a futures contract?

• A) They are not standardized contracts.
• B) They are transferable contracts.
• C) They require immediate delivery of the commodity.
• D) They require immediate payment of the price.

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Definitions:

Capitalist Economic System

An economic system based on private ownership of the means of production and where prices, production, and distribution of goods are determined by competition in a free market.

Social Arrangements

The structured ways in which society is organized, including institutions, hierarchies, and social relationships.

Geographic Location

Refers to a specific physical point on Earth's surface as defined by a set of coordinates, or a description like an address.

Globalization

The process of increasing interconnectivity and interdependence of the world's markets and businesses, facilitated by advances in communication and transportation technology.