A Performance Bond Is

question 24

Multiple Choice

A performance bond is

• A)put up by both parties in a futures contract.
• B)paid only by the buyer of a futures contract to make sure she or he does not renege on the deal.
• C)collected in advance by the clearinghouse so that both parties can participate in futures agreements.
• D)Both a and c are correct.

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Definitions:

Forgery Rule

A legal principle dealing with the falsification of documents or signatures and the legal implications thereof.

Position Power

The authority and influence an individual holds as a result of their role or positional standing within an organization or group.

Formal Hierarchy

An organizational structure where positions and roles are clearly defined, establishing clear lines of authority and communication.

Authority

The power or right to give orders, make decisions, and enforce obedience.