Which of the Following Statements Is Most CORRECT

question 1

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) There are futures contracts for currencies but no forward contracts for currencies.

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Definitions:

Farm Programs

Government initiatives designed to support farmers, stabilize food prices, and ensure a steady supply of agricultural products through subsidies, loans, and other means.

Agricultural Resources

Inputs used in the production of agricultural goods, such as land, labor, and capital, along with more specific resources like seeds and fertilizers.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for being the world’s oldest surviving federation.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, fostering cooperation in economic, social, and security matters.