________ Occurs When One Contracting Party Informs the Other That

question 15

Multiple Choice

________ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.

• A) Restitution
• B) Rescission
• C) Anticipatory repudiation
• D) Material breach

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Definitions:

Long Position

A financial strategy where the investor purchases a security with the expectation that its value will rise over time.

Futures Contract

A standardized legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specific time in the future.

Clearinghouse

Established by exchanges to facilitate transfer of securities resulting from trades. For options and futures contracts, the clearinghouse may interpose itself as a middleman between two traders.

Taxation

The process whereby authorities impose financial charges on individuals or legal entities, which can have implications for investment decisions.