It Is Possible for a Farmer to Enter into a Forward

question 31

True/False

It is possible for a farmer to enter into a forward contract with a bank where he /she locks-in a price for his/her grains for the upcoming season.

---

Definitions:

Executive Agency

A governmental body under the direct authority of the executive branch, responsible for administering specific legislation.

Interest Group

An organization or group that seeks to influence public policy and decision-making to benefit their particular interests or causes.

Deposit

A deposit is a sum of money placed in a financial institution for safekeeping, which can earn interest over time, commonly used in banking for savings or checking accounts.

Beginning

The point in time or space at which something starts.