Which One of the Following Is a Difference Between a Forward

question 1

Multiple Choice

Which one of the following is a difference between a forward contract and a futures contract?

• A)Forward contracts are based on commodities while futures contracts are based on financial instruments.
• B)The price of the asset exchanged is determined when a forward contract is entered while the price is set on the exchange date for a futures contract.
• C)A forward contract is a formal agreement while a futures contract is an informal agreement.
• D)Futures contracts are managed through an organized exchange while forward contracts are not.
• E)There are no differences between forward and futures contracts.

---

Definitions:

Pay Level

A classification denoting the amount of compensation or salary assigned to a job, based on factors like complexity, responsibility, and market rates.

Pay Levels

The ranges of compensation provided to employees, often determined by experience, education, and role responsibilities within an organization.

Point Matrix

A quantitative tool used in job evaluation to assess the relative value of different positions within an organization based on predefined criteria.

Point Manual

A reference guide that assigns numerical values to job elements for the purpose of determining wage rates.