Which of the Following Is True for Futures Contracts

question 1

Multiple Choice

Which of the following is true for futures contracts?

• A)They do not have standardized terms.
• B)They have clearinghouses that guarantee the transactions.
• C)They are private contracts between two parties.
• D)The parties have a higher risk of defaulting on a contract.
• E)The settlement of a futures contract occurs at the end of the contract.

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Definitions:

Lens

A piece of transparent material, typically glass or plastic, that refracts or focuses light rays, used in glasses and cameras.

Vestibule

The area in the inner ear between the semicircular canals and the cochlea.

Semicircular Canals

Structures in the inner ear that help a person maintain balance; each of the three canals is positioned at right angles to the other two.

Cochlea

A spiral-shaped canal in the inner ear that contains the hearing receptors.