All of the Following Are Roles of an Exchange EXCEPT

question 120

Multiple Choice

All of the following are roles of an exchange EXCEPT

• A) instituting margin requirements on futures contracts.
• B) marking to market at the end of each day.
• C) eliminating the need for buyers and sellers of futures contracts to be concerned about the creditworthiness of each other.
• D) reducing the default risk involving forward contracts.

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Definitions:

Methodological Rigor

The strict adherence to and application of meticulous and systematic strategies for conducting research or analysis.

End-Goal

The ultimate outcome or objective that a person or organization is aiming to achieve.

Investigative Expense

The costs incurred during the process of examining or researching something thoroughly, often for legal or business purposes.

Credible Sources

Refers to information or data that is reliable and trustworthy, often verified by reputable authority or evidence.