Which of the Following Statements Is Most CORRECT

question 11

Multiple Choice

Which of the following statements is most CORRECT?

• A) One advantage of forward contracts is that they are default free.
• B) Futures contracts generally trade on an organized exchange and are marked to market daily.
• C) Goods are never delivered under forward contracts,but are almost always delivered under futures contracts.
• D) Forward contracts are generally standardized instruments,whereas futures contracts are generally tailor-made for the 2 parties of the contract.
• E) Essentially there are no differences between forward and futures contracts,except that forward contracts are used only for financial assets while futures contracts are used only for commodities.

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Definitions:

Lower Federal Courts

are the courts within the U.S. federal judiciary system that are below the Supreme Court, including district courts and courts of appeals.

Precedents

Previous cases or legal decisions that serve as a guide or rule for future instances or decision-making processes in the law.

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The supreme law of the United States, establishing the framework of the national government and the fundamental rights of citizens.

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This term commonly refers to the highest authority of law in a country, often the constitution, which supersedes all other laws.