Futures Exchanges Standardize Nonstandard Forward Contracts, Establishing Such Features as Contract

question 16

True/False

Futures exchanges standardize nonstandard forward contracts, establishing such features as contract size, delivery dates, and grades that can be delivered. Only the price and number of contracts are left for futures traders to negotiate.

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Definitions:

Formal-Operational Thought

A stage in Piaget's theory of cognitive development where individuals develop the ability to think about abstract concepts, hypothetical situations, and use logic.

Piaget's Ideas

The theories of cognitive development proposed by Jean Piaget, emphasizing how children progress through distinct stages of development.

Transitivity

Principle that says if a relation holds between a first object and a second object, and holds between the second object and a third object, then it holds between the first object and the third object. Piaget argued that an understanding of transitivity is characteristic of concrete operational thought.

Logical

Pertaining to the use of reason and systematic thinking to analyze and form judgments.