When a Standardized Forward Contract Is Traded on an Exchange

question 26

Multiple Choice

When a standardized forward contract is traded on an exchange, it is called:

• A) forward contract
• B) futures contract
• C) options contract
• D) none of the above

---

Definitions:

Smoot-Hawley Act

A United States legislative act passed in 1930, which raised tariffs on thousands of imported goods, contributing to the severity of the Great Depression.

Import Restrictions

Government-imposed limits or duties on the quantity or value of goods that can be imported into a country.

Military Self-sufficiency

The capability of a nation to produce all necessary military supplies and services internally without relying on foreign assistance.

National Security

Measures and strategies implemented by a government to protect its country's citizens, economy, and institutions from threats.