Which of the Following Is True for Futures, but Not

question 16

Multiple Choice

Which of the following is true for futures, but not for forwards?

• A) Actual delivery.
• B) No transactions costs.
• C) Self regulation.
• D) None of the above.

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Definitions:

Cheaper Service

A service offered at a lower price relative to other similar services, emphasizing cost-effectiveness.

Perfect Competitor

A theoretical market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect the market price.

Average Total Cost

The total cost of production divided by the number of units produced, representing the cost per unit of output.

Economies

Systems of production, distribution, and consumption of goods and services among individuals, businesses, and governments within a region or country.