All Futures Contracts Are Between the Client and the Exchange

question 66

True/False

All futures contracts are between the client and the exchange clearing house thus effectively eliminating specific counterparty risk at delivery date.

---

Definitions:

Control Chart

A tool used in process control to monitor, control, and identify the stability of a process over time.

Process

A series of actions or steps taken in order to achieve a particular end.

Statistical Process Control

A method used to monitor, control, and ensure the quality of processes by using statistical methods.

Type II Error

A statistical error that occurs when a hypothesis test fails to reject a false null hypothesis, also known as a "false negative."