Which of the Following Statements About Futures Contracts Is Correct

question 61

Multiple Choice

Which of the following statements about futures contracts is correct?

• A) Most futures contracts are held to maturity.
• B) Future contract holders will either buy or sell an opposite contract on or before expiry date to close-out the contract.
• C) The majority of commodity futures are held to maturity.
• D) Financial futures contracts are delivered at maturity whereas all commodity futures are closed-out.

Recognize the arguments related to infant-industry protection and their criticisms.

Assess the effects of trade policies on economic growth rates.

Discuss the concept of dumping and its impact on international trade.

Understand the relationship between trade barriers and economic growth.

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Definitions:

Commission

A fee paid to an agent or employee for conducting a transaction or performing a service.

Promotional Costs

Expenses associated with marketing and advertising a business's products or services.

Estoppel

A legal principle that prevents a party from contradicting or asserting something contrary to a previous statement or behavior.

Detriment

A loss or harm suffered as a result of an action or a decision.