To Create a Particular Futures Contract, ________ Must Obtain Approval

question 42

Multiple Choice

To create a particular futures contract, ________ must obtain approval from the ________, a government regulatory agency.

• A) an exchange; Commodity Futures Trading Commission
• B) a stock offering; U.S. Securities and Exchange Commission
• C) a broker; Commodity ForwardTrading Commission
• D) a dealer; U.S. Exchange and Futures Commission

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Definitions:

Principal-Agent Problem

An economic conflict where an individual (the agent) has the responsibility to act for the benefit of another party (the principal), but might fail to do so because of differing interests.

Representative Democracy

A form of government where citizens elect officials to represent their interests and make decisions on their behalf in the legislative process.

Private Business

A business entity owned and operated by private individuals, not controlled by the government, and aimed at earning profit.

Public Agencies

Government departments or organizations that operate within the public sector, providing services to the nation or a community.