There Are Three Advantages of Using Interest Rate Futures Instead

question 26

Multiple Choice

There are three advantages of using interest rate futures instead of the cash market (trading long-term Treasuries themselves) . One of these advantages is that ________.

• A) the transactions costs of using futures are higher than those in the corresponding cash market.
• B) margin requirements are lower for futures than for Treasury securities; using futures thus permits less leverage.
• C) it is easier to take a short position in the futures market than to sell short in the Treasuries market.
• D) All of these

---

Definitions:

Maintenance Stage

A phase in the transtheoretical model where individuals sustain their behavior change over time and work to prevent relapse.

Transtheoretical Model

A theory of behavioral change that assesses an individual's readiness to act on a new healthier behavior, and provides strategies, or processes of change to guide the individual through the stages of change to Action and Maintenance.

Enabling Factors

Conditions or elements that facilitate the accomplishment of an action or the attainment of a goal, making processes easier or possible.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.