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Characteristics of Futures Contracts Include

question 11

Multiple Choice

Characteristics of futures contracts include
I.traded on an exchange
II.settled on maturity date
III.initial margin and maintenance margin required
IV.standardized contracts


Definitions:

Externalities

Financial consequences for unrelated third parties, which can manifest as either positive or negative effects.

Perfectly Competitive

Describes a market structure where many firms sell identical products, there are no barriers to entry, and no single buyer or seller can influence the market price.

Allocate Resources

The process of distributing available resources, such as labor, capital, and land, among various uses to fulfill societal needs and wants.

Consumer Surplus

The deviation between the monetary amount consumers are willing to pay for a good or service and the monetary amount they actually pay.

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