The Buyer of a Forward Contract Is Said to Have

question 5

True/False

The buyer of a forward contract is said to have a short position while the seller of a forward contract is said to have a long position.

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Definitions:

Bankers' Acceptances

Short-term credit investments created by a non-financial firm and guaranteed by a bank.

Money Market Funds

Investment funds that invest in short-term debt securities with the aim of offering high liquidity with a low level of risk.

Institutional Funds

Investment pools that target large-scale investments, managed by professionals and accessible mainly to institutional investors.

Increased Disclosure

The practice of making more financial and operational information available to the public or regulatory bodies, aiming to improve transparency.