Which of the Following Is NOT a Difference Between a Currency

question 37

Multiple Choice

Which of the following is NOT a difference between a currency futures contract and a forward contract?

• A) The futures contract is marked to market daily, whereas the forward contract is only due to be settled at maturity.
• B) The counterparty to the futures participant is unknown with the clearinghouse stepping into each transaction, whereas the forward contract participants are in direct contact setting the forward specifications.
• C) A single sales commission covers both the purchase and sale of a futures contract, whereas there is no specific sales commission with a forward contract because banks earn a profit through the bid-ask spread.
• D) All of the above are true.

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Definitions:

Intergroup Relations

The interactions and relationships that occur between groups of people, which can include aspects of conflict, cooperation, and competition.

Sherif

A psychologist known for his work on realist conflict theory and the Robbers Cave Experiment, studying intergroup conflict and cooperation.

Realistic Conflict Theory

Sherif’s theory of intergroup conflict that explains intergroup behaviour in terms of the nature of goal relations between groups.

Superordinate Goals

Goals that both groups desire but that can be achieved only by both groups cooperating.