Non-Deliverable or Mandatory-Settled Contracts,such as for Electricity or Treasury Bonds

question 36

True/False

Non-deliverable or mandatory-settled contracts,such as for electricity or treasury bonds are settled by means of a futures contract.

---

Definitions:

Tax Rate

The rate at which taxes are applied to a person or a company's income.

Per Unit

A term used to describe the measurement or pricing of something in individual units or on a per-item basis.

FICA

Federal Insurance Contributions Act, a U.S. law requiring a deduction from employees’ paychecks and employer contributions to fund Social Security and Medicare.

Economic Analysis

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving specific objectives.