The Advantage of Forward Contracts Over Futures Contracts Is That

question 14

Multiple Choice

The advantage of forward contracts over futures contracts is that forward contracts ________.

• A) are standardized
• B) have lower default risk
• C) are more flexible
• D) have higher default risk

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Definitions:

The Prince

A political treatise by Niccolò Machiavelli, written in 1513, advising rulers on how to gain and maintain power by pragmatic and sometimes manipulative means.

The Art of War

An ancient Chinese military treatise attributed to Sun Tzu, focused on strategy, tactics, and foresight in military operations and warfare.

Economic Decline

A period characterized by a decrease in the economic performance of a country or region, often marked by a fall in GDP, employment, and investment.

New World

A term historically used to refer to the Americas, indicating their discovery by European explorers during the Age of Exploration.