There Are a Number of Differences Between Forward and Futures

question 101

Multiple Choice

There are a number of differences between forward and futures contracts.Which of the following statements is false?

• A) Futures have less liquidity risk than forward contracts.
• B) Futures have less credit risk than forward contracts.
• C) Futures have more default risk than forward contracts.
• D) In futures, the exchange becomes the counterparty to all transactions.
• E) None of the above (that is, all statements are true)

Understand how perceptions of social norms influence health-related behaviors.

Grasp the effects of media and social influences on health behaviors such as smoking.

Understand the concept of opportunity cost in investing own funds.

Learn how to calculate expected profit rate.

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Definitions:

Comfort

A state of physical ease and freedom from pain or constraint; the easing or alleviation of a person's feelings of grief or distress.

External Distractions

Interruptions or stimuli from the environment that divert attention away from a focal task or subject.

Environmental Distractions

Environmental Distractions refer to interruptions or diversions in one's surroundings that interfere with concentration or focus.

Interference

The action of interfering or the process of being interfered with, often leading to disruptions or impediments in communication, processes, or performance.