Which of the Following Features of Futures Contracts Were Not

question 82

Multiple Choice

Which of the following features of futures contracts were not designed to increase liquidity?

• A) Standardized contracts
• B) Traded up until maturity
• C) Not tied to one specific type of bond
• D) Can be closed with off setting trade

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Definitions:

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Transfer Price

The price at which goods or services are sold between divisions within the same company or between companies under common control.

Variable

A quantity or factor in an experiment or equation that can change or be changed.

Variable Production Cost

Costs that vary directly with the level of production output, including raw materials, direct labor, and other expenses that increase with production volume.