Which of the Following Is Not Correct Concerning Forward Contracts

question 98

Multiple Choice

Which of the following is not correct concerning forward contracts? Forward contracts:

• A) are not standardized.
• B) do not set the price until the end of the contract.
• C) are not traded on organized exchanges.
• D) are not marked to market daily.

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax.

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Medicare Taxes

Taxes withheld from income to fund Medicare, the United States' federal healthcare program for individuals aged 65 and older and some younger people with disabilities.

Marginal Tax Rates

The rate of tax applied to your last dollar of income, representing what percentage of any additional earned income will be taken as tax.