Who Guarantees That a Futures Contract Will Be Fulfilled

question 57

Multiple Choice

Who guarantees that a futures contract will be fulfilled?

• A) The buyer
• B) The seller
• C) The broker
• D) The clearinghouse
• E) Nobody

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Definitions:

Convertibility

The ease with which one currency can be exchanged for another, indicating how freely a country's currency can be traded on the international market.

Tax Levied

Refers to the imposition of taxes by a governing authority on individuals, corporations, or properties to generate revenue for public expenditures.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time frame.

Tariff

Tariff is a tax imposed by a government on goods and services imported from other countries to protect domestic industries or generate revenue.