Which of the Following Statements About Futures Is Correct

question 91

Multiple Choice

Which of the following statements about futures is correct?

• A) Most futures contracts result in delivery.
• B) Only a small percentage of financial futures contracts results in actual delivery.
• C) Only a quarter of financial futures contracts results in actual delivery.
• D) Financial futures contracts never result in actual delivery.

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Definitions:

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Payment

The act of transferring money or its equivalent in return for goods, services, or fulfilling an obligation.

Land Resources

Natural resources encompassing geographical territories and the natural materials available within them, such as water, minerals, and fertile land used for agriculture.

Money

Anything that is generally accepted in exchange for goods and services.