Forward Contracts Are of Limited Usefulness to Financial Institutions Because

question 77

Multiple Choice

Forward contracts are of limited usefulness to financial institutions because

• A)of default risk.
• B)it is impossible to hedge risk.
• C)they are relatively inflexible.
• D)of interest-rate risk.

---

Definitions:

Members Communication

The exchange of information among members within a group or organization.

Network

A group or system of interconnected people or things.

Chain Communication

A structured form of communication that follows a hierarchical pattern, typically flowing from top to bottom within an organization.

Team Members

Individuals who are part of a group collaborating towards a common goal, each contributing with their skills and efforts.