Which of the Following About Futures Contracts Is Incorrect

question 78

Multiple Choice

Which of the following about futures contracts is incorrect?

• A) Futures contracts are exchange-traded financial instruments.
• B) The futures exchanges offer standardised futures contracts.
• C) The interest rate futures contracts, the FRA are traded on the larger exchanges.
• D) The standard features of futures contracts include the underlying physical asset, the amount traded, how quoted and how the contracts is settled.

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Definitions:

Expansionary Monetary Policy

Central bank strategies aimed at increasing the money supply to stimulate economic growth.

Demand For Investment

The desire or willingness of individuals or businesses to allocate resources towards new capital or projects expecting future returns.

Money Supply Curve

A graphical representation of the relationship between the money supply and the interest rate in an economy.

Excess Supply

A situation where the quantity of a good or service supplied is more than the quantity demanded at the current price.