The Main Difference Between a Forward Contract and a Cash

question 45

Multiple Choice

The main difference between a forward contract and a cash transaction is:

• A) only the cash transaction creates an obligation to perform.
• B) a forward is performed at a later date while the cash transaction is performed immediately.
• C) only one involves a deliverable instrument.
• D) neither allows for hedging.

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Definitions:

Van de Vliert

Refers to Evert Van de Vliert, a psychologist known for his research on how climate and economic conditions influence societal cultures, conflict, and cooperation.

Attributions

Explanations for the causes of behaviors or events, often categorized as internal (personal) or external (situational) in nature.

Controllability

The degree to which a situation or event can be controlled or influenced by actions, often related to the perceptions of individuals about their own efficacy in managing circumstances.

Personal Space Zone

An area around individuals which they regard as psychologically theirs, invasion of which can cause discomfort or distress.