Which of the Following Is Not Correct Concerning Forward Contracts

question 98

Multiple Choice

Which of the following is not correct concerning forward contracts? Forward contracts:

• A) are not standardized.
• B) do not set the price until the end of the contract.
• C) are not traded on organized exchanges.
• D) are not marked to market daily.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used to gauge inflation.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of economic output over time by valuing goods and services at constant prices.

Money Supply

The complete inventory of monetary assets within an economy at a defined moment.

Money Supply Increases

A situation where the total amount of money in circulation within an economy is expanded.