A Future Contract Is More Flexible Than a Forward Contract

question 46

Multiple Choice

A future contract is more flexible than a forward contract because:

• A) the future price is preset today.
• B) it is available in a wider variety of amounts.
• C) it trades on an organized exchange.
• D) prices are published in the newspaper.

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Definitions:

Growing Income Inequality

The increasing gap in economic resources and wealth between the richest and the poorest individuals in a society or globally.

Labor Demand

Refers to the total hours that employers want to hire at a given wage rate.

Highly Skilled Workers

Individuals with extensive training and expertise in particular fields, often requiring advanced education or specialized experience.

Household Income

The total amount of income earned by members of a household, including wages, salaries, benefits, and other income streams.