Which of the Following Statements Regarding Currency Futures Contracts and Forward

question 51

Multiple Choice

Which of the following statements regarding currency futures contracts and forward contracts is NOT true?

• A) A futures contract is a standardized amount per currency whereas the forward contact is for any size desired.
• B) A futures contract is for a fixed maturity whereas the forward contract is for any maturity you like up to one year.
• C) Futures contracts trade on organized exchanges whereas forwards take place between individuals and banks with other banks via telecom linkages.
• D) All of the above are true.

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Definitions:

Formal Reasoning

The process of thinking logically and systematically, often using strict rules and procedures.

Empirical Evidence

Information acquired by observation or experimentation that is used to confirm or disprove a hypothesis or theory.

Stereotype

A fixed, generalized belief about a particular group or category of people.

Problem Solving

Problem Solving involves finding solutions to complex or difficult issues through logical thinking, creativity, and decision-making processes.