Futures Contracts Are Not Subject to Capital Requirements for Banks,but

question 43

True/False

Futures contracts are not subject to capital requirements for banks,but many forward contracts are.

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Definitions:

Big Data

Pertains to immensely vast collections of data that can be examined through computational methods to uncover patterns, trends, and relationships, particularly in the context of human behavior and interactions.

Velocity

The speed at which the data are generated.

Continuity Correction

An adjustment made to a discrete probability distribution to better approximate a continuous distribution, often used in binomial and normal distribution approximation.

Discrete Binomial Distribution

A probability distribution that models the number of successes in a fixed number of independent yes/no experiments, each with the same probability of success.