The Major Difference Between FRAs and Futures Is That FRAs

question 326

Multiple Choice

The major difference between FRAs and futures is that FRAs are:

• A) Exchange-traded
• B) Margined
• C) Standardized
• D) Dealtoverthe counter

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Definitions:

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting accumulated depreciation and impairment charges.

Cost Method

An accounting method used to record investments in which the investment is recorded at cost and dividends are recognized as income.

Dividends

Dividends are payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Investment in Grub

The act of putting money into Grub (assuming Grub is a specific entity or company), expecting future financial returns.