The Uniform Guidelines Issued by Bank Regulators for Trading in Futures

question 106

Multiple Choice

The uniform guidelines issued by bank regulators for trading in futures and forwards

• A)require a bank to establish trading limits.
• B)require a bank to disclose large contract positions.
• C)require a bank to establish internal guidelines regarding hedging activities.
• D)All of these.
• E)require a bank to establish trading limits, and require a bank to establish internal guidelines regarding hedging activities.

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Definitions:

Insurance

A financial product that provides protection against potential future losses or damages in exchange for a premium.

Oral Contract

A verbal agreement between parties that is legally binding.

Statute of Frauds

A rule in law that mandates specific contract types must be written and signed to be legally binding.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to be enforceable.