The Winner and Loser in a Futures Contract Depend Upon

question 24

Multiple Choice

The winner and loser in a futures contract depend upon the:

• A)interest rate.
• B)amount of assets traded.
• C)expected future spot price and the current price on the delivery date.
• D)price in the futures contract and the current price on the delivery date.

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Definitions:

Total Deposits

The sum of all money that is deposited in a bank's accounts by its customers.

Commercial Banks

Depository institutions that historically made short-term loans primarily to businesses.

Loans

Borrowed sums of money that need to be repaid with interest over a predetermined period.

Depository Institution

A financial institution that accepts deposits from the public and provides credit facilities.