Which of the Following Is True

question 20

Multiple Choice

Which of the following is true

• A) Both forward and futures contracts are traded on exchanges.
• B) Forward contracts are traded on exchanges, but futures contracts are not.
• C) Futures contracts are traded on exchanges, but forward contracts are not.
• D) Neither futures contracts nor forward contracts are traded on exchanges.

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.

Indemnity

A security or protection against a loss or other financial burden.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the parties involved to be legally enforceable.

Oral Agreement

An agreement made through spoken communication between parties, which can be legally binding even in the absence of a written document in some cases.