In Regards to Interest Rate Futures Contracts, Which of the Below

question 31

Multiple Choice

In regards to interest rate futures contracts, which of the below statements is FALSE?

• A) Interest rate futures contracts can be classified by the maturity of their underlying security.
• B) Short-term interest rate futures contracts have an underlying security that matures in less than one year.
• C) The maturity of the underlying security of long-term futures contracts exceeds one year.
• D) A few of the major financial markets outside the United States have similar futures contracts in which the underlying security is a fixed-income security issued by the central government.

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Definitions:

Rational

Characterized by clear and logical thinking, often with regard to fulfilling one's personal goals or making decisions based on empirical evidence and reasoning.

Unemotional Self-interest

Refers to actions motivated purely by personal gain without regard to emotions or moral considerations.

Q

Generally denotes quantity in economic and mathematical models, referring to the amount of goods or services.

School of Thought

A particular philosophy or a specific way of thinking that is characteristic of a certain group or period.