Contingent Credit Risk on Derivative Contracts Is More Serious for Futures

question 46

True/False

Contingent credit risk on derivative contracts is more serious for futures contracts than for forward contracts.

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Definitions:

Children

Young human beings who are in the early stages of their lives, typically considered to be from birth to puberty.

Mistaken Identifications

Errors in recognizing faces or objects, often occurring due to factors like poor visibility, stress, or brief exposure times.

Suspect's Ethnicity

The ethnic background or heritage of a person who is being questioned or investigated in connection with a crime.

Eyewitness

A person who has directly seen an event, such as a crime or accident, and can provide a first-hand account of it.