The Terms of Futures Contracts, Such as the Quality and Quantity

question 45

Multiple Choice

The terms of futures contracts, such as the quality and quantity of the commodity and the delivery date, are

• A) specified by the buyers and sellers.
• B) specified only by the buyers.
• C) specified by the futures exchanges.
• D) specified by brokers and dealers.
• E) None of the options are correct.

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Definitions:

Equilibrium

A situation in a market where the quantity demanded equals the quantity supplied, leading to no net change in price.

Quantity Supplied

The total amount of a good or service that producers are willing to sell at a given price level.

Compact Disks

Optical storage media used to store data, including music and software, now largely superseded by digital formats.

Substitute

A product or service that can be used in place of another to satisfy consumer demand.