Which of the Following Is NOT an Advantage of a Futures

question 110

Multiple Choice

Which of the following is NOT an advantage of a futures contract over a forward contract?

• A) reduced counterparty risk
• B) increased flexibility
• C) lower information cost
• D) increased liquidity

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Definitions:

Obsessive-Compulsive

Relating to a mental disorder characterized by recurrent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions).

Perfectionism

The tendency to set excessively high standards for oneself and striving for flawlessness, often at the expense of mental well-being.

Personality Disorder

A mental disorder defined by persistent unhealthy behavior, thought patterns, and feelings that are consistent across various situations and differ significantly from what is considered normal in the person's culture.

Maladaptive

Behaviors or thought patterns that were initially a response to challenges but become counterproductive, interfering with everyday functioning or well-being.