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Which of the Following Statements Is/are Correct About a Forward

question 38

Multiple Choice

Which of the following statements is/are correct about a forward contract?
I.Forward contracts require a good faith deposit before an agreement can be reached.
II.Forward contracts are considered extremely risky since the price for the asset is determined when the contract matures.


Definitions:

Passive Voice

A grammatical construction in which the noun or noun phrase that would be the object of an active sentence appears as the subject of a sentence with passive voice.

Active Voice

A sentence structure where the subject performs the action stated by the verb directly.

Dissatisfaction

Dissatisfaction is the feeling of unhappiness or discontent resulting from unmet expectations or needs.

Sexist Language

Language that discriminates against or stereotypes individuals based on their gender, often by excluding, trivializing, or diminishing one gender.

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