Which of the Following Statements Regarding Currency Futures Contracts and Forward

question 51

Multiple Choice

Which of the following statements regarding currency futures contracts and forward contracts is NOT true?

• A) A futures contract is a standardized amount per currency whereas the forward contact is for any size desired.
• B) A futures contract is for a fixed maturity whereas the forward contract is for any maturity you like up to one year.
• C) Futures contracts trade on organized exchanges whereas forwards take place between individuals and banks with other banks via telecom linkages.
• D) All of the above are true.

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Definitions:

Economic Well-Being

Refers to the condition where individuals or societies have their basic needs met and are able to improve their standards of living, achieving a level of financial security and access to resources that allow for a comfortable life.

International Law

A body of rules and principles that governs the relations and interactions between nations.

Unrestricted Submarine Warfare

A type of naval warfare in which submarines attack merchant ships without warning, as practiced by Germany in both World Wars.

Allied Supply Shipments

The transportation and delivery of military and humanitarian supplies by the Allied nations to their forces and occupied territories during times of conflict, particularly noted in World Wars I and II.