Futures Contracts

question 44

Multiple Choice

Futures contracts:

• A)require payment in full at the time the contract is written.
• B)can be resold.
• C)establish the quantity to be exchanged but not the date of the exchange.
• D)establish both the quantity to be exchanged and the exchange date but not the price.
• E)are primary financial assets.

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Definitions:

Inflation Rate

A general rise in prices for goods and services across an economy over a certain timeframe.

Nominal

Nominal values refer to monetary values or economic statistics not adjusted for inflation, reflecting their face value.

Real Interest Rate

The interest rate corrected for the effects of inflation.