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:

Decussate

To cross or intersect so as to form an X; often refers to neural pathways in the central nervous system.

Cervical Enlargement

a widened area of the spinal cord that supplies nerves to the upper limbs.

Gray Matter

Neural tissue, especially of the brain and spinal cord, that predominantly contains neuronal cell bodies, dendrites, and unmyelinated axons, involved in processing and integration of information.

Upper Limbs

The regions of the human body extending from the shoulders to the hands, including the arms, forearms, and hands.